You need to make sure the "bin" directory of the installation is on your path. Either that or use the full path to the wsdl2java.bat file:
c:\blah\blah\bin\wsdl2java -d .........
many thanks. i have some more doubts. i installed tomcat and ant1.7.0 in my C directory.when i installed fuse framework, one fuse_env script file was generated.it has the jdk path defined by me.apart from this, all the path variables are by default it is showing.do i need to set ant path, catalina_home path manually in environment variables or modify the fuse_env script and run it.pls reply.this is the first time am working on IONA.