Welcome to the Ranch Es Tresidder! I am a noobie myself but I got that problem to. Here's what you are going.
Go to Start -> Control Panel -> System -> "Advanced" Tab
Then click on the Environment Variables button, there will be two tables there, look at the bottom and find where it says "Path".
Select it, then click on edit.
You should now see two text boxes one saying Variable Name and the other Variable value:
Here's what I have:
C:\PROGRA~1\Ticomm;%systemroot%\system32;%systemroot%;%systemroot%\system32\wbem;C:\Program Files\Windows Imaging\;%HummPATH%;C:\Program Files\Common Files\Roxio Shared\10.0\DLLShared\;C:\Program Files\Common Files\Roxio Shared\DLLShared\;%JAD_HOME%;
C:\Program Files\Java\jdk1.6.0_20\bin
The bold one is the one you need to add after your value. Please note that that is where my java is installed.
I have got the feeling that you are not using Windows XP... hehehe
By the way, after doing that, close all command prompts and open it up again.