I’m trying to install the Android SDK tools on my Windows XP SP3. I have jdk1.5.0_06 installed, but the Android SDK setup refuses to with the error in the following image. This happes in the next screen after detecting the JDK instalation.
Is this a known issue? And is there a solution?

Not sure about what the error is. But strongly recommend that you go with JDK 1.6.x version or 1.7x for Android development.