IssueTracker

note that this code does work using Google API version 7 for android 2.1

I am also having the same issue with an AVD created for Google API v8.

List<Address> addresses = geocoder.getFromLocationName("Clock Tower, Anantapur, Andhra Pradesh, India", 1);

The full stacktrace is as below:
java.io.IOException: Service not Available
    at android.location.Geocoder.getFromLocationName(Geocoder.java:159)
    at org.prashlabs.android.taskmanager.AddLocationMapActivity.mapCurrentAddress(AddLocationMapActivity.java
    at org.prashlabs.android.taskmanager.AddLocationMapActivity$2.onClick(AddLocationMapActivity.java:60)
    at android.view.View.performClick(View.java:2408)
    at android.view.View$PerformClick.run(View.java:8816)
    at android.os.Handler.handleCallback(Handler.java:587)
    at android.os.Handler.dispatchMessage(Handler.java:92)
    at android.os.Looper.loop(Looper.java:123)
    at android.app.ActivityThread.main(ActivityThread.java:4627)
    at java.lang.reflect.Method.invokeNative(Native Method)
    at java.lang.reflect.Method.invoke(Method.java:521)
    at com.android.internal.os.ZygoteInit$MethodAndArgsCaller.run(ZygoteInit.java:868)
    at com.android.internal.os.ZygoteInit.main(ZygoteInit.java:626)
    at dalvik.system.NativeStart.main(Native Method)

It will work on the actual 2.2 device.  That's the only information I know (not affiliated with Google).  I'm actually going to look into the SAME bug this evening. Seems like a giant thing to overlook.