Android : Android.bat can't run java

I know this question has been beaten to death but I still cannot get the SDK Manager to run on my Windows 7 Home.

I downloaded the eclipse + adt bundle. The SDK Manager.exe is in the sdk folder where I try to run it from. I even tried copying it to the tools folder and tried running from there but no luck.

The error I get is:

Failed to execute tools\android.bat:
The system cannot find the file specified.

The file clearly exists. I tried running it as "Administrator" as well.

Next I tried running the android.bat file itself which says:

Windows cannot find 'E:\path\to\batfile'. 
Make sure you typed the name correctly, and then try again. 

I then ran it as "Administrator" which at least detects and tries to execute it. I added in a few pause statements to android.bat itself to prevent it from closing.

Here is what I see:

'"E:\ADT\sdk\tools\lib\\find_java.exe" -s' is not recognized as an internal
or external command, operable program or batch file.

ERROR: No suitable Java found. In order to properly use the Android Developer
Tools, you need a suitable version of Java JDK installed on your system.
We recommend that you install the JDK version of JavaSE, available here:
  http://www.oracle.com/technetwork/java/javase/downloads

If you already have Java installed, you can define the JAVA_HOME environment
variable in Control Panel / System / Avanced System Settings to point to the
JDK folder.

Not sure why it says that because when I run where java in cmd I get this:

C:\Users\(MyUser)>where java
C:\Program Files\Java\jdk1.8.0_05\bin\java.exe
C:\ProgramData\Oracle\Java\javapath\java.exe
C:\Windows\System32\java.exe

And when I open cmd and manually run

'"E:\ADT\sdk\tools\lib\\find_java.exe" -s' 

it works fine.

I then tried setting the java_exe in android.bat to

set java_exe=C:\Program Files\Java\jdk1.8.0_05\bin\java.exe

After commenting out the find_java I ran it again and this is what I get:

'"C:\Program Files\Java\jdk1.8.0_05\bin\java.exe" -jar lib\archquery.jar' is not
 recognized as an internal or external command,
operable program or batch file.
Invalid path

And once again, when I manually run it, I get:

C:\Users\MyUser>"C:\Program Files\Java\jdk1.8.0_05\bin\java.exe" -jar E:\ADT\sdk\t
ools\lib\archquery.jar
x86_64

Am I missing something or should I finally give up trying to get it to work on my windows machine.