hi,
     perhaps there is some problem in ur path setting 
i just set my path to null and i begun to get the same
error as u have got 
so what u do is that 
set path=%path%;C:\jdk1.3\bin 
 
and regarding that out of space environment 
u just increase the memory size to maximum that is
4096
it will work 

 just let me know if u still have any problem 
my address is 
[EMAIL PROTECTED]

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