That's a bugger seems only G1 is supporting hardware 3D. Maybe some info here can help you : http://www.anddev.org/viewforum.php?f=2 they seem to have some 3D tutorials, though I haven't looked into it.

Well there was that Quake 1 game that seem to run fine and that was before android was released. So I have confidence in your abilities  

Also, not that I like the idea, but you could use C for the collisions: http://arstechnica.com/open-source/news/2009/06/android-goes-beyond-java-gains-native-cc-dev-kit.ars

Well what I last read is that the emulator is still slower then the device. There's a large range of derives too. I might get the Magic.

Says the issue has been closed.
I hope you will be able to release something. Seems Android has come to NZ so I might buy one soon and start some development.

2.When compiling a program in eclipse where is the compiled Jar file?, i looked in the workspace folder but it wasnt there.

There's a export option to compile to 1 jar and choose the location.

Well I seen a lot of full 3d games, so it has to be possible 

Sounds great that your adding in JOGL support. Everyone at the JavaGaming.Org site knows 1 person over who would loves JOGL , which he says it has less bugs. If that's true or not, at least you get people who think that will use your engine now. 
You could also benchmark and see if there's any speed differences  That's if your not sick of benchmarks....