Android Studio Installation Problem and Solutions


Recently Google launched Android Studio for Android development, its a new Android development environment based on IntelliJ IDEA.
Although it is still under development, it's still worth a look.
For installation, you can refer to
While installing you might encounter certain problems discussed below.
1. Problem
You have completed the installation and when you double-click the Android studio icon nothing happens.
If you try to run the same .exe from cmd then you will get "ERROR: cannot start Android Studio. No JDK found...".
Add a new environment variable named JAVA_HOME pointing to your Java home directory. In my case "C:\Program Files\Java\jdk1.7.0_17".
2. Problem
While trying to create a new project you see the popup message "Your Android SDK is out of date or is missing templates. Please ensure you are using SDK version 22 or later.".
There are multiple possible causes. If you have a path variable pointing to an older Android SDK version or Android studio is trying to access the old SDK that you were using with Eclipse.
Either you upgrade your Android SDK to a newer version (22 or greater) using the Android SDK Manager from Eclipse or you remove the path variable that you might have setup sometime earlier.
By removing the path variable Android Studio will refer to the Android SDK that it already has.
You can also follow these steps:
1. In the Android Studio welcome screen select Configure->Project Defaults->Project Structure. You will get to the following screen:
2. Select SDKs. If you don't have an Android SDK in that list then click the + icon and select Android SDK, now point to the SDK path.
This will solve your problem
3. Problem
While trying to create a new project Android studio checks Gradle installation online, now if you are on a proxy network then you will encounter an installation problem.
In the Android Studio welcome screen select "Configure" ->"Settings" and you will get the following screen. Select "HTTP Proxy" and insert your proxy settings.
4. Problem
This problem is limited and will only occur when your user account is connected to a central server. You will get this message when trying to create a new project. 
com.intellij.openapi.options.ConfigurationException: Failed to import a new Gradle project: Could not fetch a model of type "IdeaProject" using Gradle distribution "".
Unable to start the daemon process.
This problem might be caused by an incorrect configuration of the daemon.
For example, an unrecognized JVM option is used.
Please refer to the user guide chapter on the daemon at
Please read the following process output to learn more:
java.lang.IllegalArgumentException: URI has an authority component
    at org.gradle.api.internal.classpath.EffectiveClassPath.findAvailableClasspathFiles(
    at org.gradle.api.internal.classpath.EffectiveClassPath.<init>(
    at org.gradle.api.internal.classpath.DefaultModuleRegistry.<init>(
    at org.gradle.api.internal.classpath.DefaultModuleRegistry.<init>(
    at org.gradle.launcher.bootstrap.ProcessBootstrap.runNoExit(
    at org.gradle.launcher.daemon.bootstrap.GradleDaemon.main(
Android Studio is trying to access Gradle from the server path and is unable to access it due to permissions or maybe the path is something like "\\ServerName\UserProfiles\naveen\.gradle".
Well, I was not able to find any perfect solution to this problem, I changed the Gradle path by adding the GRADLE_HOME variable to the Environment variables but still no use.
So the end result was to disconnect the system from a centralized network and do a fresh install of Android Studio.
Due to the early phase of Android Studio, you may encounter additional problems while installing and running it.
I hope this will solve most of your problems if you have any more hiccups during the setup of Android Studio please do share.