Error using eclipse from oepe with weblogic 12.1

Question

I have written a very simple jsp and have tried to run it on the eclipse. I cannot start the server as it says jdk1.7_0_9 is unexpected. I have used the new server wizard, i believe, correctly and have tried to the path to java-home without spaces.
Can anybody help?
quick note:
this is how my setDomainEnv looks like:
@ECHO OFF
@REM WARNING: This file is created by the Configuration Wizard.
@REM Any changes to this script may be lost when adding extensions to this configuration.
@REM *************************************************************************
@REM This script is used to setup the needed environment to be able to start Weblogic Server in this domain.
@REM
@REM This script initializes the following variables before calling commEnv to set other variables:
@REM
@REM WL_HOME - The BEA home directory of your WebLogic installation.
@REM JAVA_VM - The desired Java VM to use. You can set this environment variable before calling
@REM this script to switch between Sun or BEA or just have the default be set.
@REM JAVA_HOME - Location of the version of Java used to start WebLogic
@REM Server. Depends directly on which JAVA_VM value is set by default or by the environment.
@REM USER_MEM_ARGS - The variable to override the standard memory arguments
@REM passed to java.
@REM PRODUCTION_MODE - The variable that determines whether Weblogic Server is started in production mode.
@REM DOMAIN_PRODUCTION_MODE
@REM - The variable that determines whether the workshop related settings like the debugger,
@REM testconsole or iterativedev should be enabled. ONLY settable using the
@REM command-line parameter named production
@REM NOTE: Specifying the production command-line param will force
@REM the server to start in production mode.
@REM
@REM Other variables used in this script include:
@REM SERVER_NAME - Name of the weblogic server.
@REM JAVA_OPTIONS - Java command-line options for running the server. (These
@REM will be tagged on to the end of the JAVA_VM and
@REM MEM_ARGS)
@REM
@REM For additional information, refer to "Managing Server Startup and Shutdown for Oracle WebLogic Server"
@REM (http://download.oracle.com/docs/cd/E24329_01/web.1211/e21048/overview.htm).
@REM *************************************************************************
set WL_HOME=C:\Oracle\Middleware\wlserver_12.1
for %%i in ("%WL_HOME%") do set WL_HOME=%%~fsi
set BEA_JAVA_HOME=C:\Progra~2\jdk1.7.0_09
set SUN_JAVA_HOME=C:\Progra~2\jdk1.7.0_09
if "%JAVA_VENDOR%"=="Oracle" (
     set JAVA_HOME=%BEA_JAVA_HOME%
) else (
     if "%JAVA_VENDOR%"=="Sun" (
          set JAVA_HOME=%SUN_JAVA_HOME%
     ) else (
          set JAVA_VENDOR=Sun
          set JAVA_HOME=C:\Program Files (x86)\Java\jdk1.7.0_09
@REM We need to reset the value of JAVA_HOME to get it shortened AND
@REM we can not shorten it above because immediate variable expansion will blank it
set JAVA_HOME=%JAVA_HOME%
for %%i in ("%JAVA_HOME%") do set JAVA_HOME=%%~fsi
set SAMPLES_HOME=%WL_HOME%\samples
set DOMAIN_HOME=C:\Oracle\Middleware\wlserver_12.1\samples\domains\wl_server
for %%i in ("%DOMAIN_HOME%") do set DOMAIN_HOME=%%~fsi
set LONG_DOMAIN_HOME=C:\Oracle\Middleware\wlserver_12.1\samples\domains\wl_server
if "%DEBUG_PORT%"=="" (
     set DEBUG_PORT=8453
if "%SERVER_NAME%"=="" (
     set SERVER_NAME=examplesServer
set DERBY_FLAG=true
set enableHotswapFlag=
set PRODUCTION_MODE=
set doExitFlag=false
set verboseLoggingFlag=false
for %%p in (%*) do call :SET_PARAM %%p
GOTO :CMD_LINE_DONE
     :SET_PARAM
     for %%q in (%1) do set noQuotesParam=%%~q
     if /i "%noQuotesParam%" == "nodebug" (
          set debugFlag=false
          GOTO :EOF
     if /i "%noQuotesParam%" == "production" (
          set DOMAIN_PRODUCTION_MODE=true
          GOTO :EOF
     if /i "%noQuotesParam%" == "notestconsole" (
          set testConsoleFlag=false
          GOTO :EOF
     if /i "%noQuotesParam%" == "noiterativedev" (
          set iterativeDevFlag=false
          GOTO :EOF
     if /i "%noQuotesParam%" == "noLogErrorsToConsole" (
          set logErrorsToConsoleFlag=false
          GOTO :EOF
     if /i "%noQuotesParam%" == "noderby" (
          set DERBY_FLAG=false
          GOTO :EOF
     if /i "%noQuotesParam%" == "doExit" (
          set doExitFlag=true
          GOTO :EOF
     if /i "%noQuotesParam%" == "noExit" (
          set doExitFlag=false
          GOTO :EOF
     if /i "%noQuotesParam%" == "verbose" (
          set verboseLoggingFlag=true
          GOTO :EOF
     if /i "%noQuotesParam%" == "enableHotswap" (
          set enableHotswapFlag=-javaagent:%WL_HOME%\server\lib\diagnostics-agent.jar
          GOTO :EOF
     ) else (
          set PROXY_SETTINGS=%PROXY_SETTINGS% %1
     GOTO :EOF
:CMD_LINE_DONE
set MEM_DEV_ARGS=
if "%DOMAIN_PRODUCTION_MODE%"=="true" (
     set PRODUCTION_MODE=%DOMAIN_PRODUCTION_MODE%
if "%PRODUCTION_MODE%"=="true" (
     set debugFlag=false
     set testConsoleFlag=false
     set iterativeDevFlag=false
     set logErrorsToConsoleFlag=false
@REM If you want to override the default Patch Classpath, Library Path and Path for this domain,
@REM Please uncomment the following lines and add a valid value for the environment variables
@REM set PATCH_CLASSPATH=[myPatchClasspath] (windows)
@REM set PATCH_LIBPATH=[myPatchLibpath] (windows)
@REM set PATCH_PATH=[myPatchPath] (windows)
@REM PATCH_CLASSPATH=[myPatchClasspath] (unix)
@REM PATCH_LIBPATH=[myPatchLibpath] (unix)
@REM PATCH_PATH=[myPatchPath] (unix)
call "%WL_HOME%\common\bin\commEnv.cmd"
set WLS_HOME=%WL_HOME%\server
if "%JAVA_VENDOR%"=="Sun" (
     set WLS_MEM_ARGS_64BIT=-Xms256m -Xmx512m
     set WLS_MEM_ARGS_32BIT=-Xms256m -Xmx512m
) else (
     set WLS_MEM_ARGS_64BIT=-Xms512m -Xmx512m
     set WLS_MEM_ARGS_32BIT=-Xms512m -Xmx512m
set MEM_ARGS_64BIT=%WLS_MEM_ARGS_64BIT%
set MEM_ARGS_32BIT=%WLS_MEM_ARGS_32BIT%
if "%JAVA_USE_64BIT%"=="true" (
     set MEM_ARGS=%MEM_ARGS_64BIT%
) else (
     set MEM_ARGS=%MEM_ARGS_32BIT%
set MEM_PERM_SIZE_64BIT=-XX:PermSize=128m
set MEM_PERM_SIZE_32BIT=-XX:PermSize=128m
if "%JAVA_USE_64BIT%"=="true" (
     set MEM_PERM_SIZE=%MEM_PERM_SIZE_64BIT%
) else (
     set MEM_PERM_SIZE=%MEM_PERM_SIZE_32BIT%
set MEM_MAX_PERM_SIZE_64BIT=-XX:MaxPermSize=256m
set MEM_MAX_PERM_SIZE_32BIT=-XX:MaxPermSize=256m
if "%JAVA_USE_64BIT%"=="true" (
     set MEM_MAX_PERM_SIZE=%MEM_MAX_PERM_SIZE_64BIT%
) else (
     set MEM_MAX_PERM_SIZE=%MEM_MAX_PERM_SIZE_32BIT%
if "%JAVA_VENDOR%"=="Sun" (
     if "%PRODUCTION_MODE%"=="" (
          set MEM_DEV_ARGS=-XX:CompileThreshold=8000 %MEM_PERM_SIZE%
@REM Had to have a separate test here BECAUSE of immediate variable expansion on windows
if "%JAVA_VENDOR%"=="Sun" (
     set MEM_ARGS=%MEM_ARGS% %MEM_DEV_ARGS% %MEM_MAX_PERM_SIZE%
if "%JAVA_VENDOR%"=="HP" (
     set MEM_ARGS=%MEM_ARGS% %MEM_MAX_PERM_SIZE%
if "%JAVA_VENDOR%"=="Apple" (
     set MEM_ARGS=%MEM_ARGS% %MEM_MAX_PERM_SIZE%
@REM IF USER_MEM_ARGS the environment variable is set, use it to override ALL MEM_ARGS values
if NOT "%USER_MEM_ARGS%"=="" (
     set MEM_ARGS=%USER_MEM_ARGS%
set JAVA_PROPERTIES=-Dplatform.home=%WL_HOME% -Dwls.home=%WLS_HOME% -Dweblogic.home=%WLS_HOME%
@REM To use Java Authorization Contract for Containers (JACC) in this domain,
@REM please uncomment the following section. If there are multiple machines in
@REM your domain, be sure to edit the setDomainEnv in the associated domain on
@REM each machine.
@REM
@REM -Djava.security.manager
@REM -Djava.security.policy=location of weblogic.policy
@REM -Djavax.security.jacc.policy.provider=weblogic.security.jacc.simpleprovider.SimpleJACCPolicy
@REM -Djavax.security.jacc.PolicyConfigurationFactory.provider=weblogic.security.jacc.simpleprovider.PolicyConfigurationFactoryImpl
@REM -Dweblogic.security.jacc.RoleMapperFactory.provider=weblogic.security.jacc.simpleprovider.RoleMapperFactoryImpl
set JAVA_PROPERTIES=%JAVA_PROPERTIES% %EXTRA_JAVA_PROPERTIES%
set ARDIR=%WL_HOME%\server\lib
pushd %LONG_DOMAIN_HOME%
@REM Clustering support (edit for your cluster!)
if "%ADMIN_URL%"=="" (
     @REM The then part of this block is telling us we are either starting an admin server OR we are non-clustered
     set CLUSTER_PROPERTIES=-Dweblogic.management.discover=true
) else (
     set CLUSTER_PROPERTIES=-Dweblogic.management.discover=false -Dweblogic.management.server=%ADMIN_URL%
if NOT "%LOG4J_CONFIG_FILE%"=="" (
     set JAVA_PROPERTIES=%JAVA_PROPERTIES% -Dlog4j.configuration=file:%LOG4J_CONFIG_FILE%
set JAVA_PROPERTIES=%JAVA_PROPERTIES% %CLUSTER_PROPERTIES%
set PRE_CLASSPATH=C:\Oracle\Middleware\wlserver_12.1\samples\server\examples\build\serverclasses
set JAVA_DEBUG=
if "%debugFlag%"=="true" (
     set JAVA_DEBUG=-Xdebug -Xnoagent -Xrunjdwp:transport=dt_socket,address=%DEBUG_PORT%,server=y,suspend=n -Djava.compiler=NONE
     set JAVA_OPTIONS=%JAVA_OPTIONS% %enableHotswapFlag% -ea -da:com.bea... -da:javelin... -da:weblogic... -ea:com.bea.wli... -ea:com.bea.broker... -ea:com.bea.sbconsole...
) else (
     set JAVA_OPTIONS=%JAVA_OPTIONS% %enableHotswapFlag% -da
if NOT exist %JAVA_HOME%\lib (
     echo The JRE was not found in directory %JAVA_HOME%. ^(JAVA_HOME^)
     echo Please edit your environment and set the JAVA_HOME
     echo variable to point to the root directory of your Java installation.
     popd
     pause
     GOTO :EOF
if "%DERBY_FLAG%"=="true" (
     set DATABASE_CLASSPATH=%DERBY_CLASSPATH%
) else (
     set DATABASE_CLASSPATH=%DERBY_CLIENT_CLASSPATH%
if NOT "%DATABASE_CLASSPATH%"=="" (
     if NOT "%POST_CLASSPATH%"=="" (
          set POST_CLASSPATH=%POST_CLASSPATH%;%DATABASE_CLASSPATH%
     ) else (
          set POST_CLASSPATH=%DATABASE_CLASSPATH%
if NOT "%ARDIR%"=="" (
     if NOT "%POST_CLASSPATH%"=="" (
          set POST_CLASSPATH=%POST_CLASSPATH%;%ARDIR%\xqrl.jar
     ) else (
          set POST_CLASSPATH=%ARDIR%\xqrl.jar
@REM PROFILING SUPPORT
set JAVA_PROFILE=
set SERVER_CLASS=weblogic.Server
set JAVA_PROPERTIES=%JAVA_PROPERTIES% %WLP_JAVA_PROPERTIES%
set JAVA_OPTIONS=%JAVA_OPTIONS% %JAVA_PROPERTIES% -Dwlw.iterativeDev=%iterativeDevFlag% -Dwlw.testConsole=%testConsoleFlag% -Dwlw.logErrorsToConsole=%logErrorsToConsoleFlag%
if "%PRODUCTION_MODE%"=="true" (
     set JAVA_OPTIONS= -Dweblogic.ProductionModeEnabled=true %JAVA_OPTIONS%
@REM -- Setup properties so that we can save stdout and stderr to files
if NOT "%WLS_STDOUT_LOG%"=="" (
     echo Logging WLS stdout to %WLS_STDOUT_LOG%
     set JAVA_OPTIONS=%JAVA_OPTIONS% -Dweblogic.Stdout=%WLS_STDOUT_LOG%
if NOT "%WLS_STDERR_LOG%"=="" (
     echo Logging WLS stderr to %WLS_STDERR_LOG%
     set JAVA_OPTIONS=%JAVA_OPTIONS% -Dweblogic.Stderr=%WLS_STDERR_LOG%
@REM ADD EXTENSIONS TO CLASSPATHS
if NOT "%EXT_PRE_CLASSPATH%"=="" (
     if NOT "%PRE_CLASSPATH%"=="" (
          set PRE_CLASSPATH=%EXT_PRE_CLASSPATH%;%PRE_CLASSPATH%
     ) else (
          set PRE_CLASSPATH=%EXT_PRE_CLASSPATH%
if NOT "%EXT_POST_CLASSPATH%"=="" (
     if NOT "%POST_CLASSPATH%"=="" (
          set POST_CLASSPATH=%POST_CLASSPATH%;%EXT_POST_CLASSPATH%
     ) else (
          set POST_CLASSPATH=%EXT_POST_CLASSPATH%
if NOT "%WEBLOGIC_EXTENSION_DIRS%"=="" (
     set JAVA_OPTIONS=%JAVA_OPTIONS% -Dweblogic.ext.dirs=%WEBLOGIC_EXTENSION_DIRS%
set JAVA_OPTIONS=%JAVA_OPTIONS%
@REM SET THE CLASSPATH
if NOT "%WLP_POST_CLASSPATH%"=="" (
     if NOT "%CLASSPATH%"=="" (
          set CLASSPATH=%WLP_POST_CLASSPATH%;%CLASSPATH%
     ) else (
          set CLASSPATH=%WLP_POST_CLASSPATH%
if NOT "%POST_CLASSPATH%"=="" (
     if NOT "%CLASSPATH%"=="" (
          set CLASSPATH=%POST_CLASSPATH%;%CLASSPATH%
     ) else (
          set CLASSPATH=%POST_CLASSPATH%
if NOT "%WEBLOGIC_CLASSPATH%"=="" (
     if NOT "%CLASSPATH%"=="" (
          set CLASSPATH=%WEBLOGIC_CLASSPATH%;%CLASSPATH%
     ) else (
          set CLASSPATH=%WEBLOGIC_CLASSPATH%
if NOT "%PRE_CLASSPATH%"=="" (
     set CLASSPATH=%PRE_CLASSPATH%;%CLASSPATH%
if NOT "%JAVA_VENDOR%"=="BEA" (
     set JAVA_VM=%JAVA_VM% %JAVA_DEBUG% %JAVA_PROFILE%
) else (
     set JAVA_VM=%JAVA_VM% %JAVA_DEBUG% %JAVA_PROFILE%
and this is hom my startWebLogic looks like:
@REM --- Start Functions ---
GOTO :ENDFUNCTIONS
:stopAll
     @REM We separate the stop commands into a function so we are able to use the trap command in Unix (calling a function) to stop these services
     if NOT "X%ALREADY_STOPPED%"=="X" (
          GOTO :EOF
     @REM STOP DERBY (only if we started it)
     if "%DERBY_FLAG%"=="true" (
          echo Stopping Derby server...
          call "%WL_HOME%\common\derby\bin\stopNetworkServer.cmd" >"%DOMAIN_HOME%\derbyShutdown.log" 2>&1
          echo Derby server stopped.
     set ALREADY_STOPPED=true
GOTO :EOF
:classCaching
     echo Class caching enabled...
     set JAVA_OPTIONS=%JAVA_OPTIONS% -Dlaunch.main.class=%SERVER_CLASS% -Dlaunch.class.path="%CLASSPATH%" -Dlaunch.complete=weblogic.store.internal.LockManagerImpl -cp %WL_HOME%\server\lib\pcl2.jar
     set SERVER_CLASS=com.oracle.classloader.launch.Launcher
GOTO :EOF
:ENDFUNCTIONS
@REM --- End Functions ---
@REM *************************************************************************
@REM This script is used to start WebLogic Server for this domain.
@REM
@REM To create your own start script for your domain, you can initialize the
@REM environment by calling @USERDOMAINHOME\setDomainEnv.
@REM
@REM setDomainEnv initializes or calls commEnv to initialize the following variables:
@REM
@REM BEA_HOME - The BEA home directory of your WebLogic installation.
@REM JAVA_HOME - Location of the version of Java used to start WebLogic
@REM Server.
@REM JAVA_VENDOR - Vendor of the JVM (i.e. BEA, HP, IBM, Sun, etc.)
@REM PATH - JDK and WebLogic directories are added to system path.
@REM WEBLOGIC_CLASSPATH
@REM - Classpath needed to start WebLogic Server.
@REM PATCH_CLASSPATH - Classpath used for patches
@REM PATCH_LIBPATH - Library path used for patches
@REM PATCH_PATH - Path used for patches
@REM WEBLOGIC_EXTENSION_DIRS - Extension dirs for WebLogic classpath patch
@REM JAVA_VM - The java arg specifying the VM to run. (i.e.
@REM - server, -hotspot, etc.)
@REM USER_MEM_ARGS - The variable to override the standard memory arguments
@REM passed to java.
@REM PRODUCTION_MODE - The variable that determines whether Weblogic Server is started in production mode.
@REM DERBY_HOME - Derby home directory.
@REM DERBY_CLASSPATH
@REM - Classpath needed to start Derby.
@REM
@REM Other variables used in this script include:
@REM SERVER_NAME - Name of the weblogic server.
@REM JAVA_OPTIONS - Java command-line options for running the server. (These
@REM will be tagged on to the end of the JAVA_VM and
@REM MEM_ARGS)
@REM CLASS_CACHE - Enable class caching of system classpath.
@REM
@REM For additional information, refer to "Managing Server Startup and Shutdown for Oracle WebLogic Server"
@REM (http://download.oracle.com/docs/cd/E24329_01/web.1211/e21048/overview.htm).
@REM *************************************************************************
@REM Call setDomainEnv here.
set DOMAIN_HOME=C:\Oracle\Middleware\wlserver_12.1\samples\domains\wl_server
for %%i in ("%DOMAIN_HOME%") do set DOMAIN_HOME=%%~fsi
call "%DOMAIN_HOME%\bin\setDomainEnv.cmd" %*
set SAVE_JAVA_OPTIONS=%JAVA_OPTIONS%
set SAVE_CLASSPATH=%CLASSPATH%
set USER_MEM_ARGS=-Xms32m -Xmx200m -XX:MaxPermSize=350m
@REM Start Derby
set DERBY_DEBUG_LEVEL=0
if "%DERBY_FLAG%"=="true" (
     call "%WL_HOME%\common\derby\bin\startNetworkServer.cmd" >"%DOMAIN_HOME%\derby.log" 2>&1
set JAVA_OPTIONS=%SAVE_JAVA_OPTIONS%
set SAVE_JAVA_OPTIONS=
set CLASSPATH=%SAVE_CLASSPATH%
set SAVE_CLASSPATH=
if "%PRODUCTION_MODE%"=="true" (
     set WLS_DISPLAY_MODE=Production
) else (
     set WLS_DISPLAY_MODE=Development
if NOT "%WLS_USER%"=="" (
     set JAVA_OPTIONS=%JAVA_OPTIONS% -Dweblogic.management.username=%WLS_USER%
if NOT "%WLS_PW%"=="" (
     set JAVA_OPTIONS=%JAVA_OPTIONS% -Dweblogic.management.password=%WLS_PW%
if NOT "%MEDREC_WEBLOGIC_CLASSPATH%"=="" (
     if NOT "%CLASSPATH%"=="" (
          set CLASSPATH=%CLASSPATH%;%MEDREC_WEBLOGIC_CLASSPATH%
     ) else (
          set CLASSPATH=%MEDREC_WEBLOGIC_CLASSPATH%
echo .
echo .
echo JAVA Memory arguments: %MEM_ARGS%
echo .
echo WLS Start Mode=%WLS_DISPLAY_MODE%
echo .
echo CLASSPATH=%CLASSPATH%
echo .
echo PATH=%PATH%
echo .
echo ***************************************************
echo * To start WebLogic Server, use a username and *
echo * password assigned to an admin-level user. For *
echo * server administration, use the WebLogic Server *
echo * console at http:\\hostname:port\console *
echo ***************************************************
@REM CLASS CACHING
if "%CLASS_CACHE%"=="true" (
     CALL :classCaching
@REM START WEBLOGIC
echo starting weblogic with Java version:
%JAVA_HOME%\bin\java %JAVA_VM% -version
if "%WLS_REDIRECT_LOG%"=="" (
     echo Starting WLS with line:
     echo %JAVA_HOME%\bin\java %JAVA_VM% %MEM_ARGS% -Dweblogic.Name=%SERVER_NAME% -Djava.security.policy=%WL_HOME%\server\lib\weblogic.policy %JAVA_OPTIONS% %PROXY_SETTINGS% %SERVER_CLASS%
     %JAVA_HOME%\bin\java %JAVA_VM% %MEM_ARGS% -Dweblogic.Name=%SERVER_NAME% -Djava.security.policy=%WL_HOME%\server\lib\weblogic.policy %JAVA_OPTIONS% %PROXY_SETTINGS% %SERVER_CLASS%
) else (
     echo Redirecting output from WLS window to %WLS_REDIRECT_LOG%
     %JAVA_HOME%\bin\java %JAVA_VM% %MEM_ARGS% -Dweblogic.Name=%SERVER_NAME% -Djava.security.policy=%WL_HOME%\server\lib\weblogic.policy %JAVA_OPTIONS% %PROXY_SETTINGS% %SERVER_CLASS% >"%WLS_REDIRECT_LOG%" 2>&1
CALL :stopAll
popd
@REM Exit this script only if we have been told to exit.
if "%doExitFlag%"=="true" (
     exit
ENDLOCAL
please help!

Answer 1

How are you deploying - from an IDE, or weblogic.Deployer or the console...?
With console....
Have you opened an SR with Oracle?
Not yet. How to do it?