Actual SETUP:
- OS: Windows 8.1
- JDK file: jdk-8u11-windows-x64.exe
- ADT file: installer_r23.0.2-windows.exe
Install the x64 JDK, and try the back-next option first, and then try setting JAVA_HOME like the error message says, but if that doesn't work for you either, then try this:
Do as it says, set JAVA_HOME in your environment variables, but in the path use forward slashes instead of backslashes.
Seriously.
For me it failed when JAVA_HOME was C:\Program Files\Java\jdk1.6.0_31 but worked fine when it was C:/Program Files/Java/jdk1.6.0_31 - drove me nuts!
If this is not enough, also add to the beginning of the Environment Variable Path %JAVA_HOME%;
Updated values in System Environment Variables:
- JAVA_HOME=C:/Program Files/Java/jdk1.8.0_11
- JRE_HOME=C:/Program Files/Java/jre8
- Path=%JAVA_HOME%;C:...