You could also try changing your build directory for your project since that is where most of the path issues will arise. In your root build.gradle file
allprojects {
buildDir = "C:/tmp/${rootProject.name}/${project.name}"
repositories {
...
}
}
Android Studio will pick up on the change and still show your new build location in the Project view. It's a lot easier than moving your entire project.
EDIT
While Windows 10 Insider Preview now offers the ability for allowing for longer file path limits these limits currently are only actually accessible to apps which have specifically enabled support for longer file paths.
At the current time, it appears that these applications with the extended path enabled seem to be only apps that are installed via the Windows Store.
At the current time, Gradle does not and potentially cannot have this option enabled to utilize the enhanced NTFS file path length.
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