I have installed jdk 1.7 in C:\\jdk1.7.0 directory and JCreator in C:\\Program Files directory. I set the path of correct jdk path in
C:\\jdk1.7.0 directory
C:\\Program Files directory
The error shows up when the following executable does not exist.
C:\Program Files\Java\jdk1.7.0_04\bin\javac.exe
Make sure that you have the jdk executable installed.
jdk