You have JAVA_HOME set to a JRE, not a JDK. Set it to the JDK. This is a known bug in the startup scripts, and there is a JIRA for it.
I set the JAVA_HOME variable to my j2sdk folder. Now dll issue seems to be resolved. But I'm getting a new problem while trying to run the server:
java.lang.UnsupportedClassVersionError: javax/management/NotificationEmitter (Un
supported major.minor version 49.0)
at java.lang.ClassLoader.defineClass0(Native Method)
Could anyone please help me to resolve this.
Based on the error message, I assume you set JAVA_HOME to a 1.4 JDK. You need 1.5.