Can't start with 3316 DevKit projects on Windows

When I first got 3316, I set it up to run on my own copy of JDK1.5.0_03.
However, I found that I can't execute plugin projects using devkit this way.
So I tried downloading the .exe installer, and now I can't start IDEA from
the bat file unless I edit it and specify IDEA_JDK. However, if I set this
to ..\jre, IDEA still won't start. If I set it to "..", IDEA pops up a dialog
saying "tools.jar not found in IDEA classpath. Please ensure JAVA_HOME points
to JDK rather than JRE"

I can run IDEA from the .exe, but I can't execute plugin projects using DevKit
because of those errors.

I don't know what to do. I can't find a way to run IDEA and also run DevKit
plugin projects. Has anyone gotten this to work with 3316? I'd like any help
at all, I don't know what to do.

Thanks