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Try the workaround given in a recent thread on this forum for the same issue:
Workaround MSVCR71.dll is missing by placing a copy in <SQLDEV_HOME>\sqldeveloper\sqldeveloper\bin. If you downloaded the 32-bit version of SQL Developer with the JDK included, you can find that dll in <SQLDEV_HOME>\sqldeveloper\jdk\jre\bin.
So why does this happen? See the links in the following post for details:
Re: sql developer fails to launch
SQL Developer Team
What about the error "Unable to launch the Java Virtual Machine located at path ../../jdk/jre/bin/client/jvm.dll ".How this issue will be fixed?
will appreciate your help.....'
Doesn't fixing the MSVCR71 issue allow you start SQL Developer successfully and never see the jvm error message? In my past experience, I thought those message traveled in pairs! But if for some reason you are still having problems, you can bypass running the tool from an .exe and instead run directly from Java by using the sqldeveloper.bat file (see the post above my final post in the following thread):
Sqldeveloper - Windows 7 64 Bit - unable to launch
Edited by: Gary Graham on Feb 22, 2013 2:43 PM
In the referenced thread, note the disconnect between those two final posts: the other poster said using sqldeveloper.bat worked for him, not resetting the ORACLE_HOME. My reply, however, related to ignoring any other ORACLE_HOMEs on the machine. Not sure exactly why the sqldeveloper.bat file worked for the poster. Java actually does rely on MSVCR71.dll (Java 6) or MSVCR100.dll (Java 7).
Edited by: Gary Graham on Feb 22, 2013 5:09 PM
Another alternate fix for Windows seems to be appending $JAVA_HOME/bin to the $PATH variable:
The specified item was not found.
download MSVCR71.dll and copy it to the system32 directory of your program files.
You may need to restart your computer and try running sqldeveloper.exe again