Here are the salient lines (lots omitted) of an overlay I used to show accuracy on a GoogleMap (v1) overlay. You should get the general idea and be able to adapt it to v2
public class AccuracyOverlay extends com.google.android.maps.Overlay {
@Override
public boolean draw(Canvas canvas, MapView mapView, boolean shadow,
long when) {
super.draw(canvas, mapView, shadow);
float accuracyRad = 100.0f; // 100 metres as an example
Paint paint = new Paint();
paint.setColor(Color.RED);
paint.setAlpha(16);// +lots more set() methods applied
Point p1 = new Point();
CommonPosition cp = CommonPosition.getInstance();
// Last position
GeoPoint lastFixGp = new GeoPoint(cp.getLatitudeE6(),
cp.getLongitudeE6());
mapView.getProjection().toPixels(lastFixGp, p1);
canvas.drawCircle(p1.x, p1.y, accuracyRad, paint);
return false;
}
}