"File not Found" exception in dexDebug task of build

Try locating your projects in a path that doesn't have non-ASCII characters in it; your username is in Unicode, and the build system can't handle pathnames that have non-ASCII Unicode.

This is actually a bug in Java and is quite difficult to fix; see https://code.google.com/p/android/issues/detail?id=56102 for details. The crux of it is that Java's launcher uses the wrong Windows API call to fetch its command line from the OS.

I just solved this very same problem 5 minutes ago. As you can see here debug: file not found in Android 1.0 my problem was the pathname. Before updating to 1.0 I was working with #Ing.Informatica and /Ingeniería/AdministradorContraseñas now I must work with Ing.Informatica and /Ingenieria/AdministradorContrasennas because it seems like after the update Android Studio is never more able to read special characters.

Hope it helped.