Today, Google announced the new Android Studio IDE at its annual Google I/O conference. It looks to be a great improvement over Eclipse, especially when developing apps for different screen sizes such as phones and tablets.

However, if you are running Windows 7 or Windows 8, you may have issues running the application. Several users have reported not being able to run the application after it has been installed. We also had this same problem.

If you are like us, eager developers that want to play with cool, new tools, you can fix this issue by doing the following:

Right click on My Computer, and select Properties. Click on “Advanced system settings” and go to the “Advanced” tab. On the bottom, click the “Environment Variables” button. This will bring up the Environment Variables screen, you will see two sections, User Variables (at the top), and System Variables (at the bottom). Add a system variable with the name JDK_HOME, and the value equal to the path to your JDK install.

Step 4 might differ based on how your system is setup, but as an example, here are the settings that worked for us:

Variable name: JDK_HOME

Variable Value: c:Program FilesJavajdk1.7.0_21