FULL PRODUCT VERSION :
java version "1.8.0-ea"
Java(TM) SE Runtime Environment (build 1.8.0-ea-b118)
Java HotSpot(TM) Server VM (build 25.0-b60, mixed mode)

ADDITIONAL OS VERSION INFORMATION :
Ubuntu 12.10 32bits

A DESCRIPTION OF THE PROBLEM :
Given a package private class with a public method and a public subclass that inherits the public method, if we try to use the inherited public method using a lambda expression like:
c.forEach(subclass::inheritedMethod);

we get an java.lang.IllegalAccessError

STEPS TO FOLLOW TO REPRODUCE THE PROBLEM :
Considering the following scenario:
A package 'mypackage' containing a package private class called MyPackagePrivateBaseClass:
class MyPackagePrivateBaseClass {

    public void doSomething(String input) {
        System.out.println(input);
    }
}
and a public subclass called MyPublicClass:
public class MyPublicClass extends MyPackagePrivateBaseClass {
}

If I try to access the inherited public method 'doSomething' from a class in a different package using a lambda expression I get a 'java.lang.IllegalAccessError':

public class Test {
    public static void main(String[] args) {
        doesWork();
        doesNotWork();
    }

    public static void doesNotWork() {
        MyPublicClass victim = new MyPublicClass();
        List<String> items = Arrays.asList("first", "second", "third");
        items.forEach(victim::doSomething); //illegal access error here
    }

    public static void doesWork() {
        MyPublicClass victim = new MyPublicClass();
        List<String> items = Arrays.asList("first", "second", "third");
        for (String item : items) {
            victim.doSomething(item);
        }
    }
}

EXPECTED VERSUS ACTUAL BEHAVIOR :
EXPECTED -
As per the example, it should print:
first
second
third
ACTUAL -
Exception in thread "main" java.lang.IllegalAccessError: tried to access class mypackage.MyPackagePrivateBaseClass from class Test
at Test.doesNotWork(Test.java:19)
at Test.main(Test.java:13)


ERROR MESSAGES/STACK TRACES THAT OCCUR :
Exception in thread "main" java.lang.IllegalAccessError: tried to access class mypackage.MyPackagePrivateBaseClass from class Test
at Test.doesNotWork(Test.java:19)
at Test.main(Test.java:13)


REPRODUCIBILITY :
This bug can be reproduced always.

---------- BEGIN SOURCE ----------
package mypackage;
class MyPackagePrivateBaseClass {

    public void doSomething(String input) {
        System.out.println(input);
    }
}

package mypackage;
public class MyPublicClass extends MyPackagePrivateBaseClass {
}

import java.util.Arrays;
import java.util.List;

import mypackage.MyPublicClass;

public class Test {
    public static void main(String[] args) {
        doesWork();
        doesNotWork();
    }

    public static void doesNotWork() {
        MyPublicClass victim = new MyPublicClass();
        List<String> items = Arrays.asList("first", "second", "third");
        items.forEach(victim::doSomething);
    }

    public static void doesWork() {
        MyPublicClass victim = new MyPublicClass();
        List<String> items = Arrays.asList("first", "second", "third");
        for (String item : items) {
            victim.doSomething(item);
        }
    }
}
---------- END SOURCE ----------

CUSTOMER SUBMITTED WORKAROUND :
Make public the private package parent class