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Probably you can remove the '_JAVA_OPTIONS' setting from your environment variables on the Windows OS. This setting is usually created by the install/setup file of the tool installed on your machine. In my case it was the QTP (Quick Test Professional) a testing tool from 'Mercury'.
I used to get this error message when I tried typing 'java -version' or 'java' on the command prompt.
*Picked up JAVAOPTIONS: -Xrunjvmhook -Xbootclasspath/a:C:\PROGRA~1\COMMON~1\MERCUR~1\FUNCTI~1\Java\classes;C:\PROGRA~1\COMMON~1\MERCUR~1\FUNCTI~1\Java\classes\jasmine.jar*
FATAL ERROR: JVMPI, an experimental interface, is no longer supported.
Please use the supported interface: the JVM Tool Interface (JVM TI).
For information on temporary workarounds contact: firstname.lastname@example.org
Error: could not load Mercury Interactive support. Please run the setup again.
If the problem persists please contact Mercury's Customer support.
Error occurred during initialization of VM
-Xrun library failed to init: jvmhook
After trying hard with the available information on the websites, I tried removing the '_JAVA_OPTIONS' and 'IBM_JAVA_OPTIONS' entry from the system environment variables. After removing this entry, I tried launching QTP Tool and it was able to launch without any issues and when I typed 'java' or 'java -version' I got the actual expected result.
Hope this would be of immense help for other guys !!