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....

~cktricky