Good post on resolving the error:
Error occurred during initialization of VM Unable to load dependent libraries: Can't find dependent libraries
The culprit is too many java.exe's and the wrong one being put to use.
http://geekycoder.wordpress.com/2009/07/08/java-tips-adventure-in-resolving-the-java-error-error-occurred-during-initialization-of-vm/
What I am curious about is how did the java.exe get in the Windows directory that caused this error? Not going further with this (I'm busy) but the things I did recently include upgrading to the latest version of Java which I did twice due to putting it in a directory I didn't want it in the first time around, install some software from Fluke Networks, and go to a bunch of Java programming pages on the net. While looking at one of them an error was thrown. Not sure that was related to the web site or just a coincidence.
Oh well, renamed all the java.exe's except the one I wanted so they wouldn't get run and put the path to the one I intended to use on my system path so all good it seems.