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Even I am facing the similar problem
"Oracle SQL Developer
Unable to launch the Java Virtual Machine
Located at path: C:\Program Files\Java\jdkl.7.O\jre\bin\server\jvm.dll"
The file exist at the same location mentioned above. Not yet able to to find a solution. If anyone get a solution please do post.
It's best not to play with Java 7 as it is not supported by SQL Developer yet. The caveats are here:
SQL Developer 3.0 and Java SE 7?
Try using jdk1.6.0_26 instead. If you search for other posts on this forum concerning this matter, you will see it is important to install matching 32-bit or 64-bit versions of Java and SQL Developer. Mixing the bit versions won't work.
SQL Developer Team
I found the answer to solve this problem. I have installed Java 7 JDK. I just set the Path of java in system properties.
Steps to add path in Windows 7 64bit is as follows:
1. Right click on My computer, then click on properties.
2. On left pane click on "Advanced system settings".
3. Click on "Advanced>Envionment Variables"
4. In system variables box under Variable column look for text "Path".
5. Select that row and click on Edit.
6. In "Variable Value" text box append the path of java installation seperated by other path with ";" in my case I appened it with ";C:\Program Files\Java\jdk1.7.0\bin"
7. Then just click on ok and then run the application which is giving you this error.
I worked for me wish it work for you also.