Hello Jonathan
Your decision about which version of android.jar you use has two consequences:
1. The higher the version, the more current the API is and the more functionality you can use in your apps.
2. If you use functionality that is "too" new, many users will not be able to use your app, because their Android version is too old and does not support this new functionality.
In AndroidManifest.xml you can specify what the minimum API level must be for your app (android:minSdkVersion).
In Google Play users will only be shown apps if the Android version of their device is the same or higher than the minSdkVersion of the apps.
Unfortunately, there is no way for the compiler to know which functionality belongs to which API level. So, it cannot warn you if you use functionality which is not available in the minSdkVersion.
Since I want my apps to run on as many devices as possible, I choose the OLDEST android.jar which fits the needs of my app - usually android-api8.jar
By telling the compiler to use this android-api8.jar (instead of a newer one), I can make sure that when I use functionality of API 9 or higher, I will get a compilation error.
Except for the android.jar you do not need any other stuff from the Android SDK.
Tom