I guess it won't hurt to create a new virtual device, though if you're able to launch the old one directly from the SDK Manager, then I guess that is not the problem.
I wonder whether the project you are trying to build is one that you've already exported (successfully) from Tersus, and you are trying now to rebuild it (with changes I'd guess). If so, I'd suggest you try exporting to a new Export Location, and see whether that resolves the problem.
If it does, but you wish to maintain the old exported project, than I guess you can try doing what the error recommends you do ... i.e. run from the command line, the following:
Please keep us posted, which if any of the above suggestions, helped resolved the issue.
Regards,
David
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