Target-specific emulators for Eclipse in Android?

I'm an Android newbie just getting past "hello world" in Eclipse. I was at the Verizon store today trying out 4 different Android phones for my next upgrade and I realized how DIFFERENT they all are even though they're all 2.1 or 2.2.

Short of buying an expensive collection of Android phones from different vendors, is there a way to EMULATE some of the major phones like HTC Incredible or Droid X in my Eclipse IDE?

How bad is the Android fragmentation problem I read about on blogs? When I write an app for开发者_如何学Python a PC I don't have to worry about whether it's a Toshiba PC or an Acer or a Dell. How much do I need to worry about Droid 2 -vs- Droid X - vs HTC Incredible?

Thanks in advance!

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Here is a link to a similar question with information on how to create emulators in Eclipse.

Essentially you just create an Android Virtual Device with the same screen resolution and OS version as the device you want to target.

Here is great blog post by Adam Powell on the official Android Developer Blog about the completely over-hyped fragmentation "issue", and what you can do to make sure your app runs on almost every Android device.