Android Studio and Gradle

[theDazzler]

I'm trying to get AA to work in Android Studio using Gradle and nothing seems to work. This is the error I'm getting: : 20:21:07.345 [Daemon] ERROR o.a.h.AndroidManifestFinder:134 - Could not find the AndroidManifest.xml file, going up from path

This is a brand new android project. I haven't done anything except try to get AA working.

Here is my build.gradle file

buildscript {
    repositories {
        mavenCentral()
    }
    dependencies {
        classpath 'com.android.tools.build:gradle:0.7.+'
        // the latest version of the android-apt plugin
        classpath 'com.neenbedankt.gradle.plugins:android-apt:1.1'
    }
}

repositories {
    mavenCentral()
}

apply plugin: 'android'
apply plugin: 'android-apt'
def AAVersion = '3.0'

dependencies {
    apt "org.androidannotations:androidannotations:$AAVersion"
    compile "org.androidannotations:androidannotations-api:$AAVersion"
}

apt {
    arguments {
        // you can set annotation processing options here, like these commented options:
        // logLevel 'INFO'
        // androidManifestFile 'path to file'
    }
}

android {
    compileSdkVersion 19
    buildToolsVersion "19.0.0"

    defaultConfig {
        minSdkVersion 7
        targetSdkVersion 19
        versionCode 1
        versionName "1.0"
    }
    buildTypes {
        release {
            runProguard false
            proguardFiles getDefaultProguardFile('proguard-android.txt'), 'proguard-rules.txt'
        }
    }

    sourceSets {
        main {
            manifest.srcFile 'src/main/AndroidManifest.xml'
            java.srcDirs = ['src/main/java']
            resources.srcDirs = ['src/main/res']
            res.srcDirs = ['src/main/res']
            assets.srcDirs = ['assets']
        }
    }
}

dependencies {
    compile 'com.android.support:appcompat-v7:+'
}

I've tried changing the paths in the sourcesets but it doesn't work. How can I get this to work with Android Studio? The code in the wiki for Gradle does not work