"java.lang.IllegalArgumentException: URI has an authority component" error

Vaadin 6 / 7 / 8
1

Since I have to use java 1.7. I setup a project from Vaadin 7.5.9 arch type
When i am running the default project, I am getting the below error

[INFO]
 [ERROR]
 Unexpected internal compiler error
[INFO]
 java.lang.IllegalArgumentException: URI has an authority component
[INFO]
 	at java.io.File.<init>(File.java:423)
[INFO]
 	at com.google.gwt.dev.resource.impl.ResourceOracleImpl.createEntryForUrl(ResourceOracleImpl.java:185)
[INFO]
 	at com.google.gwt.dev.resource.impl.ResourceOracleImpl.addAllClassPathEntries(ResourceOracleImpl.java:377)
[INFO]
 	at com.google.gwt.dev.resource.impl.ResourceOracleImpl.getAllClassPathEntries(ResourceOracleImpl.java:401)
[INFO]
 	at com.google.gwt.dev.resource.impl.ResourceOracleImpl.<init>(ResourceOracleImpl.java:445)
[INFO]
 	at com.google.gwt.dev.cfg.ModuleDef.normalize(ModuleDef.java:975)
[INFO]
 	at com.google.gwt.dev.cfg.ModuleDefLoader.doLoadModule(ModuleDefLoader.java:236)
[INFO]
 	at com.google.gwt.dev.cfg.ModuleDefLoader.loadFromResources(ModuleDefLoader.java:167)
[INFO]
 	at com.google.gwt.dev.cfg.ModuleDefLoader.loadFromClassPath(ModuleDefLoader.java:138)
[INFO]
 	at com.google.gwt.dev.Compiler.run(Compiler.java:156)
[INFO]
 	at com.google.gwt.dev.Compiler$1.run(Compiler.java:120)
[INFO]
 	at com.google.gwt.dev.CompileTaskRunner.doRun(CompileTaskRunner.java:55)
[INFO]
 	at com.google.gwt.dev.CompileTaskRunner.runWithAppropriateLogger(CompileTaskRunner.java:50)
[INFO]
 	at com.google.gwt.dev.Compiler.main(Compiler.java:127)

I have also tried after updating the dtd file URL. Below is the gwt.xml file, i am using

<?xml version="1.0" encoding="UTF-8"?>
<!DOCTYPE module PUBLIC "-//Google Inc.//DTD Google Web Toolkit 2.5.1//EN" 
        "http://www.gwtproject.org/doctype/2.5.1/gwt-module.dtd">
<module>
    <inherits name="com.vaadin.DefaultWidgetSet"/>
</module>