Android Studio 0.4.2 was working fine and today I opened it and almost everything was red and the auto-completion had stopped working. I look at the imports and AS seems to
Struggled with the same problem for a couple hours this morning. Building my project from command line seems to have done the trick for me.
Exact steps -
To check if it worked, look in your projects exploded-bundles folder, inspect a library and find the classes.jar. If it is expandable, then everything is going to be ok.
edit - I found after doing a clean within Android studio, it broke again. So if you have to clean, you will need to do this process again.