I've created a device targeting 2.1 and having a screen screen size of 480x800 (WVGA). Some apps, including the one I'm currently writing, as well as the ApiDemos example, won't run fullscreen. I've uploaded a screenshot here: http://img248.imageshack.us/img248/503/emulator.png
What could cause something like this? If I run these apps on my HTC Desire (which has the same resolution), they utilize the whole screen like they should.