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Version of Android Studio (Beta) 0.8.4
OS version: Windows 8
Java JRE/JDK version: 1.8.0_11
Error:Unable to start the daemon process. This problem might be caused by incorrect configuration of the daemon. For example, an unrecognized jvm option is used. Please refer to the user guide chapter on the daemon at http://gradle.org/docs/1.12/userguide/gradle_daemon.html ----------------------- Error occurred during initialization of VM Could not reserve enough space for 1048576KB object heap Java HotSpot(TM) Client VM warning: ignoring option MaxPermSize=256m; support was removed in 8.0 
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The Gradle Daemon keeps the Gradle Framework initialized and running, and caches project data in memory to improve performance. For a Single Build. To enable the Daemon for a single build, you can simply pass the --daemon argument to your gradle command or Gradle Wrapper script.
A daemon is a computer program that runs as a background process, rather than being under the direct control of an interactive user. — Wikipedia. Gradle runs on the Java Virtual Machine (JVM) and uses several supporting libraries that require a non-trivial initialization time.
For your first app, running it on the emulator takes a considerably long period of time. I've a decently fast machine and it took around 20-22 minutes to launch the app on the emulator.
The Solution Worked:
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Do Following steps:
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