Java 8 is the recommended version for Yosemite. I found an experimental Arduino 1.5.8 version for Java 7, but not for Java 8. It actually runs, but I have difficulties uploading sketches. I don't think it's Java related:
avrdude: stk500_getsync() attempt 1 of 10: not in sync: resp=0x00
avrdude: stk500_recv(): programmer is not responding
I found some posts about similar issues on OSX 10.9. I installed the FTDI driver. The RX led of my Diecimila blinks occasionally, but that's it. I have also tested several other boards and different USB cables.
Arduino 1.5.8 for Java 7 (experimental) seems to work with Oracle's Java 8. The JRE is highly backwards compatible. Regarding the avrdude errors: Don't forget to choose the correct board AND the correct processor before uploading your sketches (duh…).
If you want to use Arduino 1.5.8 or 1.0.6 for Java 6, you may want to install Apple's Java . To uninstall it just remove /System/Library/Java/JavaVirtualMachines/1.6.0.jdk
It was a combination of selection the right arduino board (i have freeduno) and holding the reset long enough.
In love with my arduino again !!!
running BS18D20 sensor now