I am currently trying to update Android Studio to 1.0.0-RC. This seems to require gradle Android plugin 1.0.0-rc1. After the update, I started having the following error:
In my case I was getting this error because there was a dependency on a library folder specified in my settings.gradle. That folder had a lot of faulty configurations apparently. So as soon as I removed it from settings.gradle, the project compiled just fine.