Visual Cobol P.E. V2.2 will not install on Windows 7

I have spent the better part of 3 days trying to get this package to install. The jist of my problem is that the installer can't find a java on my machine. It keeps failing telling me that the product needs an Oracle Java of at least 1.6.0 and restart the installation when one is installed.

Let me describe my problem:

Windows 7 64bit and Java Oracle 1.7.0_04 (this was installed into the (x86) folder so I am assuming that this is the 32bit version.

The current version of Visual Cobol runs with Eclipse. They supply a 32bit Visual Cobol and a 32bit Eclipse. The installation instructions say I must install a 32bit Java for installation.

Here is my JAVA_HOME: c:\program files(x86)\java\jdk1.7.0_04

Here is my JRE_HOME: c:\program files (x86)\java\jre7

Here is my PATH: .;c:\program files(x86)\java\jdk1.7.0_04\bin;C:\Windows\system32;C:\Windows;C:\Windows\System32\Wbem;C:\Windows\System32\WindowsPowerShell\v1.0\;C:\Program Files\ibm\gsk8\lib64;C:\Program Files (x86)\ibm\gsk8\lib;C:\PROGRA~1\IBM\SQLLIB\BIN;C:\PROGRA~1\IBM\SQLLIB\FUNCTION;C:\PROGRA~1\IBM\SQLLIB\SAMPLES\REPL;c:\program files\ibm\sqllib\java\bin;c:\program files\ibm\sqllib\lib;

It must be something with the Environment Variables, but for the life of me I can't find the problem.

Any assistance will be greatly appreciated.