You don't have to check any settings in android.bat .Me n piyush faced the same problem . Go to eclipse/preferences/network . Enter the network settings over there .And from there you can download both the SDK and AVD (Android emulator ) and other stuff like google extensions .
Secondly this can also be done without internet connectivity as below
2)Just go through this repository and find in the required files like if you are looking for Android SDK 1.5 , you can use the following lines
Then enter it as below in the firefox or whatever
Like if you want to download this package listen in the xml file "android-1.1_r1-linux.zip"
Just add this line to the above link and ur done
Really cheap hack but it works
the real problem is proxy authenticating a completely authenticated android application .