The "AppEngine Connected Android Project" is old. On my installation of Eclipse 4.2 and the current GPE I don't see that option. Endpoints has replaced that.
The easiest way for you to proceed, IMO, is to create an Android project, then use the "Generate AppEngine Backend" wizard (i.e. select the Android project in the package explorer, then find that wizard on the Google sub-menu).
That will create an App Engine project with endpoints, and configure it to automatically copy its endpoint libraries to your Android project when you select 'generate cloud endpoint libraries'.