I get always this erroe when I try to obfuscate an App with proguard
Error:ProGuard: [MyApp] java.io.IOException: Can\'t read [C:\\Program Files\\Java\\jdk1.
Seems that Proguard doesn't support Java 8 actually. You have to use JDK version 7.
EDIT-1
I have recompiled Proguard to support JDK 8 classes, doesn't support Java 8 new features but if your code doesn't use Java 8 new syntax(e.g. Lambda Expression) should works without problems. Tested with some android projects.
To use replace the file proguard.jar in
android-sdk\tools\proguard\
with the content of THIS ARCHIVE
EDIT-2
Recently has been released the official Proguard 5 that should address the issue. You can download this from HERE