Having the same problem, I do this exactly - copy the code and save as a batch file, run the file, it creates launch2.bat but when I run it I get "The system cannot find the path specified" even though C:\program files\java\jre7\bin\java.exe is where my java is...
Edit: Just tried copy pasting Java from progfiles(x86) to progfiles and now when i run the .bat I get this error:
Error occurred during initialization of VM
Could not reserve enough space for object heal
Error: Could not create the Java Virtual Machine.
Error: A fatal exception has occurred. Program will exit.