I get an error message:
The Internal RMI Registry port 1099 may be in use by another application.
I change it to another port, but still get an error. I am using Windows 7, 64 bit and Nokia SDK1.1.
Java 7 u21 (and Java 6 u45) re-enabled this issue. The Nokia SDK works with Java 7 u17 (and Java 6 u43).
I tried changing the port, killed all other java applications, but no luck.
As a result, the problem turned out to be a jdk / jre error. Apparently, the error appeared from 1.6 to 29. Here is the error report. in the sdk release note. http://www.oracle.com/technetwork/java/javase/downloads/jdk-6u27-download-440405.html
Thus, switching to the old JDK should fix the problem. I uninstalled jdk and installed JDK1.6 update 23, and now it works great!
JDKv1.6u30 fixed this error.