Android : Android Studio Gradle project "Unable to start the daemon process /initialization of VM"

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

Please read below process output to find out more:

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

Error Log:

    <pre>at org.jetbrains.plugins.gradle.service.project.AbstractProjectImportErrorHandler.createUserFriendlyError(AbstractProjectImportErrorHandler.java:106)
at org.jetbrains.plugins.gradle.service.project.BaseProjectImportErrorHandler.getUserFriendlyError(BaseProjectImportErrorHandler.java:153)
at org.jetbrains.plugins.gradle.service.project.BaseGradleProjectResolverExtension.getUserFriendlyError(BaseGradleProjectResolverExtension.java:358)
at org.jetbrains.plugins.gradle.service.project.AbstractProjectResolverExtension.getUserFriendlyError(AbstractProjectResolverExtension.java:151)
at com.android.tools.idea.gradle.project.AndroidGradleProjectResolver.getUserFriendlyError(AndroidGradleProjectResolver.java:269)
at org.jetbrains.plugins.gradle.service.project.GradleProjectResolver$ProjectConnectionDataNodeFunction.fun(GradleProjectResolver.java:367)
at org.jetbrains.plugins.gradle.service.project.GradleProjectResolver$ProjectConnectionDataNodeFunction.fun(GradleProjectResolver.java:333)
at org.jetbrains.plugins.gradle.service.project.GradleExecutionHelper.execute(GradleExecutionHelper.java:203)
at org.jetbrains.plugins.gradle.service.project.GradleProjectResolver.resolveProjectInfo(GradleProjectResolver.java:116)
at org.jetbrains.plugins.gradle.service.project.GradleProjectResolver.resolveProjectInfo(GradleProjectResolver.java:64)
at com.intellij.openapi.externalSystem.service.remote.RemoteExternalSystemProjectResolverImpl$1.produce(RemoteExternalSystemProjectResolverImpl.java:41)
at com.intellij.openapi.externalSystem.service.remote.RemoteExternalSystemProjectResolverImpl$1.produce(RemoteExternalSystemProjectResolverImpl.java:37)
at com.intellij.openapi.externalSystem.service.remote.AbstractRemoteExternalSystemService.execute(AbstractRemoteExternalSystemService.java:59)
at com.intellij.openapi.externalSystem.service.remote.RemoteExternalSystemProjectResolverImpl.resolveProjectInfo(RemoteExternalSystemProjectResolverImpl.java:37)
at com.intellij.openapi.externalSystem.service.remote.wrapper.ExternalSystemProjectResolverWrapper.resolveProjectInfo(ExternalSystemProjectResolverWrapper.java:49)
at com.intellij.openapi.externalSystem.service.internal.ExternalSystemResolveProjectTask.doExecute(ExternalSystemResolveProjectTask.java:48)
at com.intellij.openapi.externalSystem.service.internal.AbstractExternalSystemTask.execute(AbstractExternalSystemTask.java:137)
at com.intellij.openapi.externalSystem.service.internal.AbstractExternalSystemTask.execute(AbstractExternalSystemTask.java:123)
at com.intellij.openapi.externalSystem.util.ExternalSystemUtil$2.execute(ExternalSystemUtil.java:406)
at com.intellij.openapi.externalSystem.util.ExternalSystemUtil$3$2.run(ExternalSystemUtil.java:483)
at com.intellij.openapi.progress.impl.ProgressManagerImpl$TaskRunnable.run(ProgressManagerImpl.java:471)
at com.intellij.openapi.progress.impl.ProgressManagerImpl$2.run(ProgressManagerImpl.java:178)
at com.intellij.openapi.progress.ProgressManager.executeProcessUnderProgress(ProgressManager.java:209)
at com.intellij.openapi.progress.impl.ProgressManagerImpl.executeProcessUnderProgress(ProgressManagerImpl.java:212)
at com.intellij.openapi.progress.impl.ProgressManagerImpl.runProcess(ProgressManagerImpl.java:171)
at com.intellij.openapi.progress.impl.ProgressManagerImpl$8.run(ProgressManagerImpl.java:380)
at com.intellij.openapi.application.impl.ApplicationImpl$8.run(ApplicationImpl.java:419)
at java.util.concurrent.Executors$RunnableAdapter.call(Executors.java:511)
at java.util.concurrent.FutureTask.run(FutureTask.java:266)
at java.util.concurrent.ThreadPoolExecutor.runWorker(ThreadPoolExecutor.java:1142)
at java.util.concurrent.ThreadPoolExecutor$Worker.run(ThreadPoolExecutor.java:617)
at java.lang.Thread.run(Thread.java:745)
at com.intellij.openapi.application.impl.ApplicationImpl$1$1.run(ApplicationImpl.java:149)

2014-07-29 23:35:50,193 [ 402805] WARN - .project.GradleProjectImporter -

2014-07-29 23:35:50,193 [ 402805] INFO - .project.GradleProjectImporter - 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

Please read below process output to find out more:

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

Consult IDE log for more details (Help | Show Log)