I've tried editing android's skin layout in the emulator to be 1600x1200 and the emulator fails to bring up a window. It works fine for smaller resolutions like 1024x480 and such but not big resolutions. Although even with 1024x480, part of the emulator window is inaccessible and not visible. My question is whether anyone has made this work and if so what does their layout file or other changes look like?
I don't know if it's possible to change the resolution of the emulator to 1600x1200, but why do you want to do that?
Android doesn't support that resolutions. With gingerbread, maximum resolution will be 1280×760.
The emulator currently doesn't support this (it is a limit on the size of some memory areas it uses). You don't need to run with such a resolution, though, because there are no devices shipping with that size.
For sizes like 1024x480 that you say parts are not visible, I assume this is because the window at the resolution doesn't fit on your computer's screen? If so, you can supply an argument to the emulator (I forget what it is exactly) to scale the screen down so it will fit. Though of course you won't then be seeing all of the pixels your app is drawing.