Differences between Jar, Android Library and Android Library Project

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As I understand, the three ways of distributing my application are via Jar, Android Library and Android Library Project.

Jar - cannot contain resources or XML layouts (so this is out for me)

Android Library - I don't really know how this works but the Google API uses it...

Android Library Project - includes resources but allows the client free rein on the code as it is distributed as source.

If I am to create a closed source application that requires drawables and XML files that I want to distribute to other Android programmers, what should I use? And can someone direct me to a tutorial on creating an Android Library?

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