Gradle DSL method not found: 'compile()'

As the note of your project's build.gradle file suggests:
// NOTE: Do not place your application dependencies here; they belong
// in the individual module build.gradle files
Remove the 2 compile statements in that gradle file:
compile 'com.android.support:appcompat-v7:20.+'
compile 'com.google.android.gms:play-services:6.5.+'
And then make your other (module's) build.gradle dependencies look like this:
dependencies {
    compile fileTree(dir: 'libs', include: ['*.jar'])
    compile 'com.android.support:appcompat-v7:21.0.3'
    compile 'com.google.android.gms:play-services:6.5.+'
}

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