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Running encrypt.bat and get : "The system cannot find the path specified."

I've verified the JAVA_PATH is correct as an environment variable.

I'm running encrypt.bat from the "D:\Program Files\\Data Loader\bin" directory, but I just a one line output of "The system cannot find the path specified."
Joakim AdlerberthJoakim Adlerberth

Since this question was asked a long time ago, I hope you have solved it.

For those who run into this problem; I solved it by setting JAVA_HOME to the correct java path.

My wrong path was 

C:\Program Files\Java\jdk1.6.0_02\bin

the correct one is
C:\Program Files\Java\jdk1.6.0_02\