Van B, what version of AppGameKit are you working with? And have you updated your Android directories to have the same (current? 1076) version?
I had thought the same thing, then I updated my AppGameKit and was not able to just have a <androidproj>/media directory.
Also, for Android builds using the make files and such supplied, it won't include <android>/media in the built apk file. There might be ways to add it in the .mk files or the Eclipse IDE.
For the Windows builds, all you need is <yourwinproj>/media and it is fine.
Cheers,
Ancient Lady
AGK Community Tester