Resolution:
The following things should be addressed to ensure that GridServer and FabricServer work when using Java:

    * Never put a trailing "" for JAVA_HOME. Otherwise, GridServer and FabricServer can not be run as a Windows OS Service.
      Incorrect Example:
      JAVA_HOME=C:\j2sdk1.4.2_11
      Correct Example:
      JAVA_HOME=C:\j2sdk1.4.2_11
    * You must install the Java Cryptography Extension (JCE) so that grid user password can be encrypted. You can download JCE from Sun's website. Be aware that JCE for 1.4 and 1.5 are different.