> I launch derby by issuing the command (from $DERBY_HOME)

It's always been a bit of a trick to figure out which
directory the Network Server is trying to read your
properties from.

Does it work if you do:

  java -jar $DERBY_HOME/lib/derbyrun.jar -Dderby.language.logStatementText=true 
server start

If it's looking in the wrong directory, one thing to do
is to run 'sysinfo' against the Network Server.

http://db.apache.org/derby/docs/10.10/adminguide/tadminconfigsysteminformation.html

thanks,

bryan

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