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Real life issue

Android Studio was unable to find a valid JVM

I have installed JDK 1.0.7_25 and Android Studio bundle as instructed. After completing the installation when I tried to launch I got the following error message
Failed to load JVM, FROM JAVA_HOME

JAVA_HOME: C:\Program Files\Java\jdk1.7.0_21 and PATH: C:\Program Files\Java\jdk1.7.0_21\bin
PATH = C:\other existing paths\;C:\path to jdk\bin\