The story...
1. I copied an existing app and renamed some of the file/directory names as well as the label and package name
2. As the intended tablet (Hudl 2) is more up to date I installed api 19 and updated any other bits that were out of date.
3. I created a device definition and then created the avd
4. When I tried to connect the designer to the loaded avd it came up with the cannot copy message.
I have since played around and deleted the avd and device definition, and recreated them (1900 by 1200). Now when I try and connect to it in the designer it says connecting and then goes back to being disconnected and no messages are display.
Hope this info helps. Thanks