Please don't extract it, Do a installation in the default folder. I think JVM is not installed properly. I did some research and i found that in the python files we have paths as C:\Program files(x86)\Java\jdk6/jre6 mentioned by default or it will search for the environment variable. I would urge you to remove the existing folder and delete the env variable. Do a fresh installation with jdk-7u25-windows-x64.exe, then set the environment variable. It should work perfectly.
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