If I remember correctly, you need to add your Java's /bin path to your path environment variable by hand. Open your Computer by right-clicking, go to Advanced system settings, then Environment Variables and add the full path to the Path variable. For example, I added ;C:\Program Files\Java\jre6\bin to the existing string.
You need to take care of three things...I too faced similar problems so can tell you how to go about it: 1) Download Eclipse -> 32 bit version...since your SDk is 32 bit...make sure ur JDK is 32 bit... 2) After downloading 32 bit version install Android ADT first...... 3)Then go to Preference-> Android -> Give the SDk path here......n then download the platforms and samples....
Feel free to ask if your still unable to get it sorted coz i faced similar problems....