iReport does not work with java 8.
(you will find it here: iReport-x.x.x\etc\ )
change this line:
#jdkhome="/path/to/jdk"
to this (if not this is your java 7 install dir then replace the parameter value between ""s with your installed java 7's path):
jdkhome="C:\Program Files\Java\jdk1.7.0_67"