This is a windows issue, when windows sees a path with spaces it reverts to 8.3 naming.
This means that for a sub-directory such as
Program Files
gets renamed to:
Progra~1
that is, it takes the first 6 characters of the pattern, appends the tilde, then a number representing the instance of that pattern.
For example, in place of
C:/Program Files/Jdk1.6.0_07/bin
Use:
C:/Progra~1/Jdk1.6.0_07/bin
See this link for further details and full explanation of 8.3 naming
http://support.microsoft.com/kb/142982