I meant adding the bin sub-folder (C:\Program Files (x86)\Java\jdk1.7.0_03\bin) to the PATH environment variable, but before you do, test whether that is needed, by doing the following:
I'm guessing you'll get a '... not recognized ...' error, and if so, you should try changing the path, and repeating the test to make sure javac.exe is recognized.
Once that's done, you should restart the studio before trying to build your APK.
Regards,
David
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