I just genereted a new certificate with Flash, and it worked.
For some reason the previous one was causing the issue.
I did not change anything on the previous certificate compared to the new one, but the file name. All data was the same as far as I can remember, including the password.
Anyway, problem solved.
Paanday, first make sure your Android has adobe air installed on it. Open the android market on your phone and search for it. If you can't find/install it, it means your phone is not compatible and will not run flash content that was exported as an .apk file.
Your phone needs this https://market.android.com/details?id=com.adobe.air&feature=search_result installed.
Also, don't you need Android version 2.2 at least? I could be wrong about this.
And third, like I said, I fixed that issue by recreating my android certificate.
Thanks for your reply, now i have one doubt regarding the andriod version, i tried to install the Adobe air from the link you provided but i am unable to install that!
Is it really the version issue? Which means i can publish/debug adobe air file for Andriod 2.1? Is there alternative way to publish the App from flash Andriod version 2.1? I have Sony Ericsson E16i(w8 series). Any thoughts on it?
Sorry, your phone contains an ARM 11 (variation of ARMv6) 600 MHz processor. Air for Android requires ARMv7 processor as explained here : http://kb2.adobe.com/cps/906/cpsid_90612.html.
Your phone can't run Adobe AIR or any AIR application.