Ok I solved this issue. First I worked out whether my Windows was 32 bit or 64 bit. It was 64. Then I downloaded Java 7 DK and installed. Then I changed the PATH ending to this 'C:\Program Files\Java\jre7\bin\java.exe' after reading the advice from JackNapierX.
It now works and says it has correctly loaded. But, and I may be a total idiot here, I don't know what to do next.
What is my server info? Where can I find it? I tried creating a new server with my IP but that didn't work. I have never hosted a server for anything before so I am really a noob at this.
Any help would be great, I'm so close!