ugh, that's ugly. You're running this on a windows machine, aren't you? :)
grep should be available for cygwin, that will enable the build tool to run the 'android' tool. The create script using grep to swap out arguments. The failure of curl is also likely a platform issue.
What we need is native windows build tools, but that will take a day at least. Let's see if we can't do this manually.
first let's run android and create our projects
1. android create lib-project --name Pender --target <targetid> --path <path> --package com.pender
where "<targetid>" is replaced with the latest android target and "<path>" is the desired path to the project, call it PenderAndroidLibrary
2. android create project --target <targetid> --path <path> --package <package> --activity <activityid>
where "<targetid>" = latest android target
"<path>" = path to project, should be same dir as the Library Project
"<package>" = com.pender.example or whatever you want to call your example
"<activityid>" = name of the main activity of the example, let's go with ArcadeEdlorinbeer2013-03-20 06:37:24