I use the maven-android-plugin to build the dependencies in seperate modules. I have a patched version of bouncycastles crypto implementation (to have openpgp in android). Then there is the network code which also contains no android dependencies so it can be tested without the emulator.
The testapp and the app are copied to the emulator or a real device. Then the instrumentation is started. The maven build fails if any error or failure occurs while building, installing or testing.
The continuous integration is done by hudson. The emulator can be started "headless" (-no-window) so it doesn't need to connect to the running XWindow-Server. Currently I am starting the emulator from maven with a special profile that is only used in hudson. When testing locally I usually have my phone already connected. It seems to be possible to have hudson start the emulator. With that setup logcat-output would be captured by hudson. Thats were I want to go.
Also missing in my setup is an multi environment build with all screen resolutions, locales and OS-Versions.
Can you elaborate more about your test setup?
TIA