First, you have to consider that I don’t have an Android phone, and I am new to Android development.
Please have a look at the attached image.
I used to develop some basic things in android using an AVD different from this. It had buttons as a separate panel. This AVD came after the update of eclipse and re installing android 2.2 .
I got 2 questions.
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I can’t go back after viewing the results of my applications. There are no buttons as well.
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In eclipse, I can see lot of ‘Screens’ are provided. Some are Nexus7, Galaxy Nexus, Nexus S etc. Previously I didn’t use these kind of stuff. Which screen should I use ? Some screens are very small anyway. If I use ‘Galaxy Nexus’, does that mean that my app is developed only for ‘Galaxy’ phone? I believe previous Android apps were developed in a way which are suitable for all android devices!
Please help

You can press Escape button of your keyboard to go back.
Ya nowadays device are coming with various resolution and size, target(emulator is for testing) whatever it may be but you need to create your artwork such a way that it supports all the screen, and to do the same you can see Application-skeleton-to-support-multiple-screen