milestone 8: gradle-build using jdk 1.7 does not see javax.crypt.Cipher

With a very (!) simple build script, and a very (!) simple java file, milestone 8 will not find/see javax.crypt.Cipher when running under jdk 1.7. It works with milestone 8 and jdk 1.6, and it works with milestone 7 and jdk 1.7:

[crypt]$ cat build.gradle
apply plugin: 'java'


[crypt]$ cat src/main/java/Test.java
import javax.crypto.Cipher;

class Test {
}


[crypt]$ JAVA_HOME=/usr/java/jdk1.6.0_25 /opt/gradle-1.0-milestone-8/bin/gradle clean compileJava
:clean
:compileJava

BUILD SUCCESSFUL

Total time: 3.342 secs


[crypt]$ JAVA_HOME=/usr/java/jdk1.7.0_03/ /opt/gradle-1.0-milestone-7/bin/gradle clean compileJava
:clean
:compileJava
[ant:javac] warning: [options] bootstrap class path not set in conjunction with -source 1.5
[ant:javac] 1 warning

BUILD SUCCESSFUL

Total time: 4.121 secs


[crypt]$ JAVA_HOME=/usr/java/jdk1.7.0_03/ /opt/gradle-1.0-milestone-8/bin/gradle clean compileJava
:clean
:compileJava
[ant:javac] /tmp/crypt/src/main/java/Test.java:1: error: package javax.crypto does not exist
[ant:javac] import javax.crypto.Cipher;
[ant:javac] ^
[ant:javac] 1 error

FAILURE: Build failed with an exception.

* What went wrong:
Execution failed for task ':compileJava'.
> Compile failed; see the compiler error output for details.

* Try:
Run with --stacktrace option to get the stack trace. Run with --info or --debug option to get more log output.

BUILD FAILED

Total time: 3.483 secs


Any ideas on why this fails, and how to fix it?
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