You'll run into this when working with Gradle-based projects, as this one is; even in 0.3.2, this Import project command was doing the wrong thing; it would seem to work, and would make syntax coloring in the editor work properly, but it would fail when you would try to build and run your app, and your changes would be lost when you re-synced the project with the Gradle build files. This is why this has been removed until it can be properly reimplemented. The bug to track it is at https://code.google.com/p/android/issues/detail?id=62122
In the meantime, to add an existing library as a dependency, you'll need to do it by hand in your Gradle build files. To do so, move the library so its directory is under the project root (at the moment, including modules outside the project root isn't supported), write a build.gradle
build file that will build the module, and include the module in your settings.gradle
file.
You might find it easier if you go through the File > New Module... command to create a blank module, choosing either a plain Java module or an Android module as appropriate, and copying the library files into the module directory where they need to go. That will take care of the Gradle files for you and set up the skeleton directory structure.