Thanks to the comments left by Zach from our last Android post here, it has been brought to my attention there is an easier way to do all of this with the latest AVD (4.0.3).
After creating your AVD (4.0.3)...
Step 1 - Push PortSwiggerCA.crt up to the emulator's sd card (make sure you've added SD Card support to the AVD when creating it).
Step 2 - Navigate to Settings > Security > Install Certificate from SD Card
Step 3 - Press Okay, enter a pin or password if asked
Step 4 - Following the install, if you'd like to shutdown the emulator and verify the settings have stuck, navigate to Settings > Security > Trusted Credentials and view the user pane.
Step 5 - As always, if you'd like to proxy traffic from the emulator, leverage the http-proxy argument....