This week's book giveaway is in the General Computing forum. We're giving away four copies of Arduino in Action and have Martin Evans, Joshua Noble, and Jordan Hochenbaum on-line! See this thread for details.
REinstalling works anyway, the real problem lies in the admin.config file, the classpath should not have any spaces like in 'Program Files' removing spaces (progra~1) solved the problem. It is advisable to take a backup of admin.config whenever it is changed manually.
You may have resolved this already but I was getting the exact same error but it was apparently due to the fact that the 'was' database was not created. I discovered this by looking through the tracefile and corrected it by rerunning ..\bin\createdb2.bat.