In terms of running the app:
From this SO answer it appears that you can't use the emulator to scan WiFi connections. (thanks to @DimitarDimitrov for his answer on this)
Currently, while you can use your computer's Internet connection in the emulator, it's not reliable to use it for simulating Wi-Fi. The WifiManager gets confused when you switch/want to test your connectivity state.
More relevant is this:
While you can use your Internet for simulating HTTP connections and downloading data, finer control over Wi-Fi connectivity should better be done with a device.
I would suggest trying it on a device and proceeding from there.
From a little further reading From kmansoft.com on WiFi in the emulator
The emulator has no WiFi support. For your own apps, you can fake it by checking if running in the emulator. For other apps, you’re most likely out of luck.
In terms of the installation issue on the Emulator here are some links on this error:
Generally ADB timouts and not having sufficient PC power are the causes of the installer error.
Fail to install apk on emulator
In eclipse, you can increase the timeout. In Eclipse, Go to WINDOW-->Prefrences-->android-->DDMS>increase the timeout value. In my case it was 5000 & i incresed it to 10000 & it worked for me .
Also:
Close the emulator and launch the APP again. That would fix the issue. You might have kept the emulator open for quite some time without doing any activity.
Yon can increase your adb timeout setting in eclipse. Go to Preferences-> Android-> DDMS-> find "ADB connection time out (ms)" and give some more higher value.
Also, try to see if your emulator in connected to the DDMS. Either check from DDMS view or run "ADB devices" in command prompt
Can you try it throgh ADB directly adb install -l -r WIFI.apk