I just downloaded Google's early release of the Android development tools. The download came in two pieces; the Android SDK and the Eclipse Plugin.

Setting up a project in Eclipse is a simple matter. First you download and install the SDK. Then you install the plugin via the Eclipse Software Update system. After restarting Eclipse you have to set the location of the SDK to proceed. Go to Window -> Preferences and select the Android plugin. Enter the directory where the SDK is installed.

Having installed the SDK and plugin you can create a project. A project wizard asks for a project name, project package name, and an Activity name (an Android class). The plugin builds the project and you're off and running. I'm up and running with a project in just a few minutes - I'll have more later.