Unable to test connection (SQL_HANDLE_ENV)

I have a problem when testing the connectivity with a database through ODBC Data source administration from control panel. (After Adding a new SYSTEM_DSN) . I get the following error:
Unable to connect
SQLState=IM0004
[Microsoft][ODBC Driver Manager] Driver's SQLAllocHandle on SQL_HANDLE_ENV failed.
Can you please provide a solution? I 've tried using information from other sources but haven't find the solution yet.
Thank you in advance

1. How can I see which ODBC version am I using?
2. I 've installed Oracle Instant Client Version 10.02.00.04.
3. Path is set to:
C:\DevSuiteHome_1\jdk\jre\bin\classic;C:\DevSuiteHome_1\jdk\jre\bin;C:\DevSuiteHome_1\jdk\jre\bin\client;C:\DevSuiteHome_1\jlib;C:\DevSuiteHome_1\bin;C:\DevSuiteHome_1\jre\1.4.2\bin\client;C:\DevSuiteHome_1\jre\1.4.2\bin;C:\OracleBI\server\Bin;C:\OracleBI\web\bin;C:\OracleBI\web\catalogmanager;C:\OracleBI\SQLAnywhere;C:\Program Files\Java\jdk1.6.0_11\bin;C:\OraHome_1\bin;%SystemRoot%\system32;%SystemRoot%;%SystemRoot%\System32\Wbem;C:\WINDOWS\Crystal;C:\PROGRA~1\MAPINF~1\Program;C:\PROGRA~1\SEAGAT~1\Shared
.... so it includes OracleHome\bin
4. The error message as described above appears after testing the connection.

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