Another way to resolve this problem is:
Let's assume:
path_to_driver_directory = C:\Work\drivers\
driver = IEDriverServer.exe
When getting messsage about path you can always add path_to_driver_directory containing driver to the PATH environment variable. Check: http://java.com/en/download/help/path.xml
Then simply check in cmd window if driver is available - just run cmd in any location and type name of driver.
If everything works fine then you get:
C:\Users\A>IEDriverServer.exe
Started InternetExplorerDriver server (32-bit)
2.28.0.0
Listening on port 5555
Thats it.