This week's book giveaway is in the OCPJP forum. We're giving away four copies of OCA/OCP Java SE 7 Programmer I & II Study Guide and have Kathy Sierra & Bert Bates on-line! See this thread for details.
Does the file /Users/stephensmith/Desktop/SWANS stuff/j2sdk1.4.2_14/jre/bin/java exist?
Does it have the right permissions set (i.e. do you have execute permission)?
Are you trying to run a Linux or Windows JDK on Mac OS X? That's not going to work. Mac OS X comes with its own installed version of Java - you don't need to install Java on Mac OS X. Also, you need a Mac OS X-specific version of Eclipse.