I'm getting this while installing the Android studio.

I have installed the latest JDK7 on my system, and also set path in environment variables.
I'm getting this while installing the Android studio.

I have installed the latest JDK7 on my system, and also set path in environment variables.
As you can see on your screenshort, you should set JAVA_HOME environment varible.
How to do that (Windows):
The simplest way is to go to windows/system32/ and find java. Then just change the name java to java.exe for that file.