Since moving to ADK14, I have been unable to build new apks for release on my Windows 7 system.
Building fails with \"conversion to dalvik format failed with error 1
I fixed this problem by Right click Java Project->Build Path->Configure Build Path Go to Libraries Tab, Select JavaSE-1.7->press Edit then change to JavaSE-1.6 Press finish then ok.
Go to Android Project, right click Project->Build Path->Configure Build Path Go to Order and Export Tab, check box beside your java project and other libraries you included. Click ok. In your Android Project, delete "gen" and "bin". then shortly after those two folders will regenerate.(If it doesn't then make sure you have ran your eclipse as administrator.)
now try running android project on your phone. Wala it works :)