No CPU/ABI system image available for this target
This is because you do not have system image installed for the API level that you have set as target.
You need to download System Image from the Android SDK Manager
Go to Menu -> Window -> Android SDK Manager
Now under the API level, select ARM EABI v7a System Image and Intel x86 Atom System Image and get it installed.
Restart your Android Eclipse IDE and try creating the AVD you may not get the error anymore.