Starting JBDS on Win XP produces error: "No Java virtual machine was found after searching the following locations..."

Issue

• We installed JBoss Developer Studio 3.0 on a pc based laptop running Windows XP.  The installation followed the standard procedure of running java –jar jbdevstudio-eap-win32-3.0.0-GA.jar, and was successful.

• Upon launching the application from the shortcut on the desktop, the application failed to start.  After reading the README included in the installation and following the workaround for the STARTUP problem, we encountered the following error:

  “A Java Runtime Environment (JRE) or Java Development Kit (JDK) must be available in order to run Eclipse.  No Java virtual machine was found after searching the following locations:
  "c:javajdk1.6.0_20jrebinjavaw.exe”