Android unit tests with Jenkins on a headless machine
As the author of that plugin, I can tell you yes: you can run emulators on a headless machine, without a graphical environment — just uncheck the "Show emulator window" option.
This is the equivalent of running the Android emulator with the "-no-window" option on the command line.
I will update the wiki to make this clearer; thanks for bringing it up.
I have a similar setup in my project. But I chose Robolectric for my unit tests.
It is quite easy to run the Robolectric tests on Jenkins.
You may have to go for emulator for your system tests on a headless Jenkins server.
I still do not have a solution to run the system tests on a headless server.