What is the Key Alias?

It does prompt me with a password. And yes it does

Do you need to use the debug keystore or can you generate a release keystore to use?  Follow the instructions here:

http://docs.coronalabs.com/guide/distribution/androidBuild/index.html

And try making your own keystore.  The only time I use a debug keystore is if I want other people to try my app before I upload it to a store anywhere.  Trying to use your own may get you building at least while we try and figure out why the debug one isn’t working for you.

You say:

i then put put "androiddebugkey" as my key alias

This should be chosen automatically after you enter your password (because it’s the only choice in the debug keystore).  What other choices (if any) are in the “Key Alias:” dropdown?  Perhaps a screenshot of what you are seeing would help.
 
Also, which version of Windows are you on and what version of Corona Simulator are you running?
 
From what you are describing it sounds like C:\Program Files\Corona Labs\Corona SDK\Resources\debug.keystore has gotten corrupted on your machine somehow but I’ve never heard of that happening before.  A reinstall of Corona Simulator would probably fix it but without knowing how it got corrupted in the first place it seems like a long shot.

The key alias is blank, i want too debug it so i can see if it works fine and that it doesn’t have any major bugs. I have uninstalling it, and reinstalling twice but still doesnt work.

Which version of Windows are you on and what version of Corona Simulator are you running?

Have you installed the Android SDK?  If so, what version?

How big is  C:\Program Files\Corona Labs\Corona SDK\Resources\debug.keystore (i.e. how many bytes does DIR  or Windows Explorer say is in the file)?

Using Windows 7, Using the free version of Corona. 

Im not sure if i have Android SDK installed.

the debug.keystore file is 1.23kb

Corona is updated all the time … choose Help > About Simulator… and let us know the version number shown.

Your debug.keystore sounds like it’s the right size.

We want to help but no one else is having this problem so we need to narrow down what it is about your system that is different.

2013.1137 (2013.6.7)

Perhaps your Java installation is messed up.  You should be running Java 1.6.

One option is to “Repair” your Java installation using the Programs and Features Control Panel:

http://windows.microsoft.com/en-us/windows/uninstall-change-program#uninstall-change-program=windows-7

Or you could just go for a Uninstall/Reinstall of Java to be sure.  You can find instructions here.