I had the same problem with appengine sdk 1.8.1 and sts 3.6.4.
I tried adding vm properties to sts.ini file, added% JAVA_HOME% to the beginning of the path variable. But nothing worked as I kept getting the same error.
Cannot get the System Java Compiler. Please use a JDK, not a JRE
Then I found that the problem was with the Windows \ system32 \ java * file. Appengine read java from Windows \ system32. There were three files.
java.exe javaw.exe javaws.exe
I replaced these files with the JAVA JDK home, as they were from the JAVA JRE home during installation. After that, I restarted my sts and everything worked fine, since I can deploy without problems.
zdesam
source share