ClassNotFoundException: Exception in CommandLineWrapper

When I run my code with the CommandLineWrapper, I get the followine exception in IDEA 11.1.4 (on Windows 7). The java location is not the problem. What else could cause this problem?

"C:\Program Files\Java\jdk1.6.0_35\bin\java" -classpath "C:\Program Files (x86)\JetBrains\IntelliJ IDEA 11.1.3\lib\idea_rt.jar" -server -Xmx2048m -XX:MaxPermSize=512m -XX:ParallelGCThreads=10 -server -Xmx2048m -XX:MaxPermSize=512m -XX:ParallelGCThreads=10 com.intellij.rt.execution.CommandLineWrapper C:\Users\ddash\AppData\Local\Temp\classpath2069356156305762891.tmp @vm_params C:\Users\ddash\AppData\Local\Temp\vm_params2555523824207795085.tmp com.intellij.rt.execution.application.AppMain <Main-Class>
Exception in thread "main" java.lang.reflect.InvocationTargetException
 at sun.reflect.NativeMethodAccessorImpl.invoke0(Native Method)
 at sun.reflect.NativeMethodAccessorImpl.invoke(NativeMethodAccessorImpl.java:39)
 at sun.reflect.DelegatingMethodAccessorImpl.invoke(DelegatingMethodAccessorImpl.java:25)
 at java.lang.reflect.Method.invoke(Method.java:597)
 at com.intellij.rt.execution.CommandLineWrapper.main(CommandLineWrapper.java:108)
Caused by: java.lang.NoClassDefFoundError: Exception
 at java.lang.Class.getDeclaredMethods0(Native Method)
 at java.lang.Class.privateGetDeclaredMethods(Class.java:2427)
 at java.lang.Class.getMethod0(Class.java:2670)
 at java.lang.Class.getMethod(Class.java:1603)
 at com.intellij.rt.execution.application.AppMain.main(AppMain.java:113)
 ... 5 more
Caused by: java.lang.ClassNotFoundException: Exception
 at java.net.URLClassLoader$1.run(URLClassLoader.java:202)
 at java.security.AccessController.doPrivileged(Native Method)
 at java.net.URLClassLoader.findClass(URLClassLoader.java:190)
 at java.lang.ClassLoader.loadClass(ClassLoader.java:306)
 at java.lang.ClassLoader.loadClass(ClassLoader.java:247)
 ... 10 more