JRE_HOME environment variable is not defined correctly

After completing installation of JTS and applications in Windows 7, the server.startup batch program fails.

When I run the program from a command window, it says that "The JRE_HOME environment variable is not defined correctly."

I inserted an ECHO to see the value of this variable in the program,.  It is C:\Program Files\IBM\JazzTeamServer\server\jre.  And this is the location of the bin and lib folders for Java.

I have also tried hard-coding this variable in the startup batch program but with the same results.

Thanks in advance for advice!