Problem solved
I found solution at comment 16 of Issue 1226
http://groups.google.com/group/google-appengine-java/browse_thread/thread/24aadd04f3ae0245

Regards
Sahil

On Nov 25, 11:14 pm, Sahil Mahajan <sahilm2...@gmail.com> wrote:
> Hello Stephan
>
> I am new to gae. My JAVA_HOME variable has value "C:\Program Files\Java
> \jdk1.6.0_01"
> I also checked build.xml, but I could not understand where I need to
> mention jdk instead of jre.
>
> Can you give me some more details
>
> Regards
> Sahil
>
> On Nov 24, 11:00 pm, Stephan Hartmann <hartm...@metamesh.de> wrote:
>
> > You are using a Java Runtime Environment (JRE) which does not include a
> > compiler.
>
> > You have to use a JDK instead.
>
> > Regards,
> > Stephan
>
> > sahil mahajan schrieb:
>
> > > Hello
>
> > > I am working on java google app engine. When I try to upload my
> > > application, I receive following error
>
> > > Error Details:
>
> > > Nov 24, 2009 10:18:11 PM org.apache.jasper.JspC processFile
>
> > > INFO: Built File: \addressbook.jsp
>
> > > java.lang.IllegalStateException: cannot find javac executable based on
> > > java.home
>
> > > , tried "C:\Program Files\Java\jre1.6.0_04\bin\javac.exe" and
> > > "C:\Program Files\
>
> > > Java\bin\javac.exe"
>
> > > Unable to upload app: cannot find javac executable based on java.home,
> > > tried "C:
>
> > > \Program Files\Java\jre1.6.0_04\bin\javac.exe" and "C:\Program
> > > Files\Java\bin\ja
>
> > > vac.exe"
>
> > > If I remove addressbook.jsp file, error does not occur
>
> > > What could be the reason?
>
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>
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