If you ever move an Android Studio project, you’ll probably notice that Gradle will get mad at you for a while. This is also true if you try to git clone a project to another computer, for example.
Gradle ‘Android’ project refresh failed:
Could not execute build using Gradle distribution ‘http://services.gradle.org/distributions/gradle-1.8-bin.zip’.
Project directory ‘<old_directory>’ does not exist.
It tries to help you out by providing a link to a dialog where, ostensibly, the issue can be resolved.
Unfortunately, there is no field in this window that applies to the broken setting. I’m sure this oversight will be resolved in a later Android Studio release, but until then, you can fix the issue by editing /.idea/gradle.xml within your project directory. Set the externalProjectPath option to the appropriate value. Problem solved!