Upgraded to SDK 2.3 - now no emulators have connectivity
I found a temporary solution for people having this problem.
You can start your AVD in CMD prompt like this
Windows
C:\program files\android\android-sdk-windows\tools\emulator -avd <avdname> -dns-server 8.8.8.8
Maccd ~/Library/Android/sdk/emulator./emulator -avd <avdname> -dns-server 8.8.8.8
8.8.8.8 is google public DNS.
The problem seems to be that the emulator can't find the DNS your computer is currently using.
Solution is: change your DNS server (on the development machine) to fixed, e.g. 8.8.8.8
In order to use internet on emulator if you are setting behind a proxy server perform the following steps:
Go to settings->Wireless & networks->mobile networks->Access Point Names.Press menu button. an option menu will appear.
from the option menu select New APN.
Click on Name. provide name to apn say My APN.Click on APN. Enter www.
After this check the internet Connection