Unable to create an adapter process from the Adapter Config utility

I am getting the following error when I try to configure any of my adapters(XML, FIle IO) :

Task: Start adapter process in test mode:
Warning: CreateProcess: C error=3, could not insure that the parameters are valid

Task: Update infosets:
Could not save infosets of document type “AdapterConfig::ixmlAdapter”
:COM.activesw.adapter.devkit.AdapterException: Introspection failed.

java.io.IOException: CreateProcess: C error=3 

Because of the errors shown above, this adapter process cannot be enabled!
You can only save this entry without enabling it.

No matter what value I provide in the paramete tab I always get the same error. Since I am new to webmethods any help is appreciated.

Thanks,
Alok.