Tried all the above options, nothing worked. So I finally figured out the solution:
I removed all JRE installations in my C:\Program Files and C:|Program Files(x86) folders. Installed a new JDK 7 package, copied the fullpath of JDK7\bin folder and appended it at the end of the "Path" variable found under 'Environment variables' of my Windows 7 pc. Then restarted everything, so it worked.