My current project had been building with Gradle just fine, since I created it (about a month ago), after acquiring Android-Studio. [I installed some earlier updates to Andr
Step 1: Change line in build.gradle from:
dependencies {
classpath 'com.android.tools.build:gradle:0.4'
}
to
dependencies {
classpath 'com.android.tools.build:gradle:0.5.+'
}
Note: for newer versions of gradle you may need to change it to 0.6.+ instead.
Step 2: In the file, delete the entire tag.
Step 3 (Maybe not necessary): In the Android SDK manager, install (if not already installed) Android Support Repository under Extras.
Info found here