I had to take some affirmative action, so I uninstalled flash and deleted all Android and AIR SDK's, reinstalled a trial version of Flash Professional CC and voila it works. I'm guessing it had something to do with conflicting AIR versions or something.. but "Please check if there is enough space on the device", Adobe is trolling me!

I appreciate your feedback though I'll let the Adobe guys have a couple more days out in the sun in peace.

I gotta say, CC is prob 10x faster than CS5.5 for compiling my game, this is amazing! from about 20 sec to 2-3 secs.