it means you dont have java installed or its bin folder is not setup in the windows path.
goto java.com and download and install java, restart the command prompt and try again
if it still says it doesnt recognize it do the following:
Right click My Computer (from start menu or desktop)
Click Properties
if using vista you need an extra step (click advanced system settings)
then click on the Advanced Tab
then click Environment Variables
then where it says System Variables find Path and double click it
Theres a box at the top of the thing and the bottem
click "NEW" put name as CLASSPATH make sure its in caps
then add this
.;C:\Program Files (x86)\Java\jdk1.6.0_18\bin;C:\Program Files (x86)\Java\jre6\lib\ext\QTJava.zip
Then in the same box add another one named PATH use caps
Add this
C:\Program Files (x86)\Java\jdk1.6.0_18\bin;C:\Program Files (x86)\Common Files\DivX Shared\;C:\Program Files (x86)\QuickTime\QTSystem\
Now in the in the Bottem Box
Click New and name is *CLASSPATH OR CLASS PATH in Caps
then where it says System Variables find Path and double click it
then hit ok out of everything restart the command prompt and try ag