How to resolve Android Installation error: INSTALL_FAILED_INSUFFICIENT_STORAGE?

Error console output:
[2011-10-06 23:14:40 - {your_android_app}] Installation error: INSTALL_FAILED_INSUFFICIENT_STORAGE
[2011-10-06 23:14:40 - {your_android_app}] Please check logcat output for more details.
[2011-10-06 23:14:40 - {your_android_app}] Launch canceled!

I tried the following solutions, but didn't get guaranteed results. They worked for a while but gives problems again. If you know any other solution please share... 

Follow the steps to increase the storage capacity of the emulator 

1. In Eclipse go to Window > Preferences
2. Click Android
3. Select Launch
4. Add "-partition-size 1024" to Default emulator options

Another way to fix the is to force the app to be installed on the device's external storage, in this case the emulator's SD card. Add the add the android:installLocation attribute to your application's manifest file as shown below.

<manifest xmlns:android="http://schemas.android.com/apk/res/android"
    package="com.as400samplecode" android:versionCode="1" android:versionName="1.0"

android:installLocation="preferExternal">

    <uses-sdk android:minSdkVersion="13" />
     ......
     ......
</manifest>