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>>I failed to set the path variable as a system environment variable. I am restricted to alter the path variable from my windows client
I think that's a hard fail, full stop type of problem.
Get a system admin to do that for you, and it should work just fine.
Anyhow, the session resets persist even with the thick connection.
I too am seeing this particular error in logging but my client seems to connect fine. My local DBA says I can safely ignore it... looking at the guidelines for the instantclient, I thought I was in a position where I had incorrectly installed the client software but the info for the older installation package is ... well, old.
Do I need to install the older VisualStudio ancillary files as suggested at the bottom of this page http://www.oracle.com/technetwork/topics/winx64soft-089540.html