Finally after writing the post and verifing everything I have stated
that in the desktop version the embeded java worked properly. The
"bug"?? is a bit tricky. If you open the desktop version you see the
launcher

http://www.openbluedragon.org/res/img/img_content/launcher.png

The launcher has a button under the Web App tab that says Start/Stop
Web App being Start when the server is stopped. If you drop the
tools.jar into OpenBlueDragonDesktop\lib at this point and start the
wep app tools.jar is not found no matter how many times you start and
stop the server. If you close the launcher completely and open it
again and then start the web app, tools.jar is found and embedded java
is working.

For the Ready2Run version I haven't found any solution yet.

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