I downloaded Android Studio and attempted to launch the program.
This is running on Windows 7 64-bit with Java 1.7. During the installation my Java 1.7 is detected,
MAKE SURE YOU RESTART ANDROID STUDIO
Even though i should know better and swear i did, make sure you restart studio after making these changes as it clearly does not check them on every build (which to me makes sense that system/user variables should only be read once on startup)
Anyway, yea... Make sure you restart after you make these changes..
Path = to the bin folder in the jdk folder (path already exists)
JAVA_HOME = to the jdk folder