[Solved]-Why does Gradle need a settings.gradle file?-eclipse

Just in case people (like myself or gladman) still have this problem and couldn't find a solution. With the current version of Gradle you can do this:

Move the file settings.gradle to the directory My-App and replace the include by includeFlat 'MyApp-AndroidLibrary'. This should fix the problem.

Also compare this question and see this section in the Gradle User Guide for further details.

You are asking several different questions. Here are some hints:

• ':MyApp-AndroidLibrary' is a logical project path, which gets mapped to a physical path based on information provided in settings.gradle.
• A multi-project build can have an arbitrary directory structure, which is configured in settings.gradle. No need to move directories around, unless you want to.
• Eclipse workspace and Gradle build are separate boundaries. You can have multiple builds in the same workspace.
• When working with libraries built from source, you can either make them part of the same build, or have a separate build for them. In the latter case, you need to make sure to build the library before the app, and exchange artifacts via a Maven or Ivy repository. This could be automated using a CI server and a corporate Maven/Ivy repository. Alternatively, you could trigger the library's build manually on your machine and use a local Maven/Ivy repository.

For more information, check out the Gradle User Guide, especially the chapter on multi-project builds.