Hi, responding because I have this exact same problem.
I run Windows 7 and use Nokia Ovi Suite for my phone...
I ran the cmd 'where java' line and it does not work for me, either.
Here's my screenshot as proof.
NOTE: It gave this output before and after Ovi Suite was installed.
I have the latest version of Java (6 v21) installed. No earlier versions are installed.
I have personally tried to work around it by uninstalling Ovi Suite and then trying it, but then when I use the shortcut, it gives me a prompt asking what application to use to open the .jar file.
So.... any help would be appreciated.