It looks like you have at some time you installed ver 1.4 but your system is finding a java.exe program file that is ver 1.3.
If you have both a 1.3 and a 1.4 java.exe, then try renaming the 1.3 version to java1.3.exe and see if it clears up your problem. If it does, just delete the 1.3 version. I suspect that something you installed also installed a 1.3 version.
If you only have a 1.3 version, then you can change the registry entry to 1.3 instead of 1.4.
You can use the Windows search function to find all files whose name is java.exe. In a command prompt, use the full path to the file and the -version option to show the version. For example, if the full path to a java.exe is c:\windows\system32\javac.exe then the command is "c:\windows\system32\javac.exe -version"