Set Environment Variable ([Windows Key]+[Pause Key], switch to "Advanced", click "Environment Variables", in "System Variables" (lower list), click "New" (or "Edit" if you already have it),
name: JAVA_HOME
value: C:\PROGRA~1\Java\JDK16~1.0_3
for C:\Program Files\Java\jdk1.6.0_32
click "ok",
go to "path" in "system variables",
add ; at the end of the line (unless there is already one there),
add: C:\PROGRA~1\Java\JDK16~1.0_3\bin
click "ok" through all. -- restart your computer (advisable)