Android Studio - local path doesn't exist

I originally saw this error after upgrading from 0.2.13 to 0.3. These instructions have been updated for the release of Android Studio 0.5.2. These are the steps I completed to resolve the issue.

1.In build.gradle make sure gradle is set to 0.9.0

buildscript {
    repositories {
        mavenCentral()
    }
    dependencies {
        classpath 'com.android.tools.build:gradle:0.9.0'
    }
}

2.In gradle-wrapper.properties make sure to use gradle 1.11

#Wed Apr 10 15:27:10 PDT 2013
distributionBase=GRADLE_USER_HOME
distributionPath=wrapper/dists
zipStoreBase=GRADLE_USER_HOME
zipStorePath=wrapper/dists
distributionUrl=http\://services.gradle.org/distributions/gradle-1.11-all.zip

3.Sync project with gradle files by pressing the button to the left of the avd button

4.Try to build project again. If still having issues possibly try File > Invalidate Caches/Restart

NOTE: If you are using 0.9.+ and it gives Could not GET 'http://repo1.maven.org/maven2/com/android/tools/build/gradle/'. Received status code 401 from server: Unauthorized (happens sporadically) then change to 0.9.0. Also, you have to use build tools 19.0 or greater I believe so make sure you have those downloaded in sdk manager and use as buildToolsVersion in whichever gradle file holds that info.

Try this:

1. Close IDE
2. Remove .idea folder and all .iml files in the project.
3. Restart the IDE and re-import the project.

Original post: https://code.google.com/p/android/issues/detail?id=59018

I managed to find a temporary workaround. Do all by yourself using command line :

// build apk
./gradlew assemble --daemon

// debug apk is unaligned so we need to align it
zipalign -f 4 app/build/apk/app-debug-unaligned.apk app/build/apk/app-debug.apk

// reinstall it using adb
adb install -r app/build/apk/app-debug.apk

This is temporary, but I hope they will fix this for 0.2.5

Edit : not fixed in 0.2.5

Edit2 : fixed for now by adding in my module.iml file (in facet/configuration) :

<option name="APK_PATH" value="/build/apk/appname-debug-unaligned.apk" />