Some tips if you still want to try to use the default emulator:
1) Reduce screen size. Don't bother to build an emulator with 1280x800 screen, the emulator will choke on it as it only uses one CPU/process (not sure) to do all translation from ARM to MacOS and back again and does all of the screen rendering in software. I think the general recommendation is to stay with 800x480 or 1024x700. Less pixels = less lag. Heck try a 480x320, if its really bad on your machine.
2) If you can use an older version of the SDK like 1.6, do so. Some of the performance gets used up by the fancier home screens of Froyo and Gingerbread.
3) Allocate more memory to the emulator. If you are using eclipse:
Go to Preferences.
Select “Launch”
ADD “-partition-size 1024” on the “Default emulator option”
Click “Apply"
You may have done this already but added for clarity.
[MC] Oops (3) was parition-size, -m is for memory.