I have downloaded both Java jdk1.7.0_06 and Java jre7. and i added the following system variable
JAVA_HOME C:\Program Files\Java\jdk1.7.0_06\bin
If you look at the "ant.bat" file, you will see that it looks for the "java" command in the following way:
%JAVACMD%environment variable is set, then it uses that.
%JAVA_HOME%environment variable is set, it tries to use
java.exe; i.e. it will look on your %PATH%.
In your case, you have
%JAVA_HOME% set ... but set to the Java installation's "bin" directory, not to the root of the installation. So the
Ant.bat script looks in the wrong place for
%JAVA_HOME% correctly, and it should work.
JAVA_HOME C:\Program Files\Java\jdk1.7.0_06
You don't need to have the Java "bin" directory on your
%PATH% for Ant to work, but it is a good idea to set it anyway. That way you can run the Java commands simply from the command line.
The setting of
%CLASSPATH% is not relevant to this problem. Indeed, unless the
build.xml file is broken, Ant will ignore your
%CLASSPATH% environment variable.