Wait a minute, I looked a little more closely at your output. You have JAVA_HOME set incorrectly. It is set to an entire path, and not to just the JDK location. Fix your JAVA_HOME setting:
set JAVA_HOME=C:\Program Files\Java\jre1.5.0_02
It looks like you are running with a JRE and not a JDK.
You should install a JDK and use that (though a JRE will work). As I mentioned earlier, you should not install the JDK into Program Files - you will run into issues later.
Finally, you are running a very old JRE - I recommend installing the latest 1.5 JDK: 1.5.0_16
[ September 10, 2008: Message edited by: Peter Johnson ]