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 was having same error message dexing did not work "Dx bad class file magic (cafebabe) or version (0033.0000)".
I had JDK1.7, Eclipse Kepler, AndroidSDK-19 (Android 4.4) installed. Finally run android-sdk-windows/SDK Manager.exe tool if there is any updates. Turns out I had level 19 sdk but Tools/Android SDK Build-tools part was 18.1.1. Installed Build-tools 19.0.3 and compilation started working fine.