To be specific, you should set JAVA_HOME and JBOSS_HOME as follows:
set JAVA_HOME=c:\Program Files\Java\jdk1.5.0_07\bin
set JBOSS_HOME=C:\JBoss\jboss-4.0.3SP1
A few other tips (these are probably not a problem but could bite you later):
1) Don't install the JDK into Porgram Files. Yes, I know that the 1.5 JDK installs
there by default. But there are too many Java libraries that cannot handle spaces in
directory names.
2) Don't set the classpath globally. That is usually asking for trouble when the Java
app picks up a class you didn't intend it to. I don't have classpath set on any of
my machines. Besides, the JBoss run script sets up the necessary classpath and its
classloaders know where to look for the jar files included with your applications.
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