I continued researching the demo install and setup and finally got a pattern.
It does not work with Java 1.7u4.
Under Java 1.6 update 32 runs fine.
Windowx 7, no issues.
Windows XP SP3, I had to manually start the human-task service by typing "ant start.human.task"
I am still researching why so many log warnigs about common jars not located. like log4j-1.2.16.jar.
So this discussion item will be kept open until my server log is clean.