Where should JAVA_HOME be pointing to - JDK or JRE? I have seen that in few websites. It is set to JRE and in others it is to JDK. And is it dependant on Java version in any way?
JDK stands for Java Development Kit, while JRE stands for Java Runtime Environment. JAVA_HOME should point to a JDK not a JRE as the JDK is used for development purposes. JDK includes the compiler and other tools needed to develop Java applications while JRE does not.
See How to set java_home on Windows 7? on how to change your JAVA_HOME.
Source: Java SE 6 vs. JRE 1.6 vs. JDK 1.6 - What do these mean?