I have no idea what the tutorial says, but the first problem ("Java not recognized....etc etc") is because Java needs to be added to the Windows environment PATH variable.
Go to Control Panel > System > Environment Variables and edit the one named "PATH" to include the location of java.exe (like, C:\Program Files\Java\JRE\java##.#_##\bin\)
Save the variable, and get out of all the windows. That should fix that error.
The error that the people are having more recently ("Exception in 'main'....") has to do with how the Java program is running. You need to navigate to the folder where the server files are located and run the bat file from the command line. Not sure why double clicking doesn't work, but cmd line should do the trick.
-rock
i tried editing path but when i click on it, the edit button is dimmed out and i can't do it windows 7
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i tried editing path but when i click on it, the edit button is dimmed out and i can't do it windows 7