I would like to thank you for all the help provided. After about 2 hours of comparing files with files and about 50 Google searches, I fixed it.
It turns out that my menu xml file named main_menu.xml had an extra line of code that didn't need to be there. See code below and read comment:
<!-- This top line is the problem -->
<?xml version="1.0" encoding="utf-8"?>
<menu xmlns:android="http://schemas.android.com/apk/res/android" >
<item
android:id="@id/action_about"
android:icon="@drawable/action_about"
android:orderInCategory="1"
android:title="@string/action_about"/>
<item
android:id="@id/action_settings"
android:orderInCategory="100"
android:title="@string/action_settings"/>
</menu>
Now the following code is the solution that fixed my R.java file generation failure:
<!-- The xml version/encoding line is gone and everything is working fine now -->
<menu xmlns:android="http://schemas.android.com/apk/res/android" >
<item
android:id="@+id/action_about"
android:icon="@drawable/action_about"
android:orderInCategory="1"
android:showAsAction="always"
android:title="@string/action_about"/>
<item
android:id="@+id/action_settings"
android:orderInCategory="2"
android:showAsAction="never"
android:title="@string/action_settings"/>
</menu>
So now everything works great!
Again, thanks for all the help!