Make sure your java bin path is set in environment variable.
http://docs.oracle.com/javase/tutorial/essential/environment/paths.html
and take a look at the last 3 posts in the following website:
http://supportforums.blackberry.com/t5/Java-Development/I-O-Error-Cannot-run-program-quot-jar-quot-CreateProcess-error-2/td-p/522638
Also make sure The Java® software development kit (Java SDK/JDK) is installed on the computer, and a correct version of the Java SDK is used.
http://supportforums.blackberry.com/t5/Java-Development/I-O-Error-CreateProcess/ta-p/445949
As mentioned in Scott Boettger comment below, this post could be helpful as well:
http://supportforums.blackberry.com/t5/Java-Development/why-cause-more-then-100-compiled-classes-packaging-I-O-error/m-p/520282