Simple problem, you used adb.exe from android 1.5 sdk. In order to make it work, you need to specify android emulator sdk version.
e.g. in Eclipse, you can create Android Virtual Devices aka AVD in AVD manager with targeting Android 1.1 and run an app using that avd
so that will bring up the emulator.
Now, you can re-run “adb install OpenIntents.apk” to install it onto your emulator. The SensorSimulator is pretty cool.