Sorry - too much for comment - my suggestion is:
First of all: I just tried - well, almost you have a configuration (Win8-64bit), but with a newer version of java and SR2 for Eclipse-DSL. No questions. But I donβt think that the previous release might be the problem here, but if all else fails: try downloading SR2-release.
I know that all of this is indicated in your post, but really make sure you run your 64-bit eclipse using 64-bit Java. Also, you always need to provide one of java.exe, javaw.exe or jvm.dll in the vm argument if you provide the vm argument, not just the java directory.
Also try the following: start with
-vm "<yourjavainstallation>\bin\java.exe" -consoleLog -debug
mind: this is java.exe , not javaw.exe - a console (command window) will appear - maybe messages will help?
If all else fails, try doing it with 32-bit Java and 32-bit eclipse. You can use the latest java - JDK 1.6 is not required. The last paragraph: required java version=1.5) assumes that you have an ancient JDK on your system (if the error message is correct). If you still have JDK 1.4 and older on your system, try uninstalling it if you really donβt need it (I would not find the reason that it really is).
Last: there is a way to make sure that eclipse uses the specified jre without the vm argument. In fact, you can copy the necessary jre into your eclipse installation into a subfolder called "jre", which will lead to the following structure:
eclipse eclipse.exe jre bin java.exe ... lib ...
and run the eclipse without the vm argument. I hope one of the points helps!
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