Despite all ugly rumors Intel has officially announced development partnership with Google for better android experience on Intel processors. The x86 port of android is already a big success. The Android x86 project is hosted as a open source at http://www.androidx86.org/ . They provide iso which can be used to install on real intel PCs as well as other virtual environments like VMWare.
Though android is designed for ARM based processors, android x86 team has done a good job in translating ARM instruction to x86. It also uses some kernel level emulation of few ARM instruction too.