After getting pointed in the right direction by @MiStr in the comments to his answer I understood that the reason I got the cyclic include error were quite obvious. I was trying to set the preview layout of the fragment to a view that contained the fragment. The preview layout should be the root layout of the fragment, not the fragment itself... The root layout is the layout that is returned by the fragments onCreateView()
method. More info here http://developer.android.com/guide/components/fragments.html#Creating
ListFragment automatically creates a root layout so that you don't have to override the onCreateView() method. Eclipse (I don't know about android studio) should automatically preview a sample list however for ListFragment.