Hi,
I'm having exactly the same problem (I think).
I can't "javac" and have been trying to set the PATH to
C:\Program Files\Java\jdk1.6.0\bin
because I'm pretty sure that's what I'm supposed to do, but it's not having any effect.
I'm feeling very stupid right now and was storming through my java book, feeling very clever until I actually tried to compile something!