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I was unable to use adb. I got the following error, both on the command line and in eclipse.
* daemon not running. starting it now on port 5037 *
ADB server didn't ACK<br>
* failed to start daemon *
That is, adb start-server failed even after rebooting. To diagnose the problem, I found that you can run adb with the following arguments:
adb nodaemon server
And it will print out the reason that it cannot run. In my case, it was a blank line in the adb_usb.ini file.