Error on compiling

Can't understand what's going on here.

Parsing code. 0.03
Compiling code. 0.06
Compiling layouts code. 0.00
Generating R file. Error
AndroidManifest.xml:2: error: No resource identifier found for attribute 'installLocation' in package 'android'

I'm stuck. Anyone give me a hand? Thanks.

You should reference android.jar from platform 8 or above.