Okay - Never mind - I answered my own question.
But for anyone who wants to know…
If you get a Java error when launching Dev Studio for 1st time…
Go to your the folder where your “DeveloperStudioALEOS.exe” resides.
You will see a file called “DeveloperStudioALEOS.ini”.
Open the file in notepad.
It will likely have all the Eclipse arguments on one line.
You can add a before each dash to clean it up - so now it looks like this:
Now add a path to your Java Virtual Machine DLL file (which is located somewhere in your Windows system).
Most likely the path to that file will be under “C:\Program File (x86)\Java\jre7\bin\client”.
Assuming that is the case…add the full path to that DLL at the beginning of the ini file.
So now your “DeveloperStudioALEOS.ini” looks like this:
C:\Program Files (x86)\Java\jre7\bin\client\jvm.dll
Now simply save that ini file again, overwriting the previous version.
BOOM! It works.
Hope that was useful to someone.