Hi Steevo and Jeffrey,
I recently helped a customer with this kind of issue.
He had a new Win7 64-bit machine so you think it would work great but....the corporate IT had installed and older version of Java to support a internal custom application for that company. A update to the Java resolved the problem.
I will make a recommendation back to our KDS/KSDK team to see if the installer can check what version of Java it detects and generate appropriate error or warning to user.
To learn what Java is required please read/review:
C:\Freescale\KDS_2.0.0\eclipse\readme\readme_eclipse.html
To check your Win 7 64-bit machine:
Open Control Panel. Search for "Java" and open the Java 32-bit app. The new Window will have Title " Java Control Panel".
Click the "About..." button.
You should see following:

Regards,
David