Issue with gradle and Java 7

gistfile1.txt

Output of gradle -v

------------------------------------------------------------
Gradle 1.12
------------------------------------------------------------

Build time:   2014-04-29 09:24:31 UTC
Build number: none
Revision:     a831fa866d46cbee94e61a09af15f9dd95987421

Groovy:       1.8.6
Ant:          Apache Ant(TM) version 1.9.3 compiled on December 23 2013
Ivy:          2.2.0
JVM:          1.7.0-ea (Oracle Corporation 21.0-b01)
OS:           Windows 7 6.1 x86


Output of java -version

java version "1.7.0_45"
Java(TM) SE Runtime Environment (build 1.7.0_45-b18)
Java HotSpot(TM) 64-Bit Server VM (build 24.45-b08, mixed mode)

Output of echo %JAVA_HOME%

C:\Program Files (x86)\Java\jdk1.7.0

Output of echo %PATH%

C:\Program Files\Common Files\Microsoft Shared\Microsoft Online Services;C:\Program Files (x86)\Common Files\Microsoft Shared\Microsoft Online Services;C:\Windows\system32;C:\Windows;C:\Windows\System32\Wbem;C:\Windows\System32\WindowsPower
Shell\v1.0\;C:\Program Files\TortoiseSVN\bin;C:\Python27;C:\gradle-1.12\bin;C:\Python27\Scripts;C:\Program Files\MySQL\MySQL Server 6.0\bin;C:\Program Files (x86)\MySQL\MySQL Utilities 1.3.6\;C:\Program Files (x86)\Java\jdk1.7.0\bin