Solution from a different angle:
Type "adb devices" in terminal (the executable is in platform-tools directory of Android SDK).
If the output shows that the device exists, this may be related to the project you are trying to run (if not then the device is not installed correctly, driver issue). If the device's Android version is lower than the project's minimum version (see AndroidManifest.xml file look for android:minSdkVersion), the device will not appear in the launch window. Try a lower number for android:minSdkVersion than the one specified which is smaller or uquals your device's version. Please take in account that this may cause the app to crash if your device does not support the API used in the project.