Idea 8.1.2 Grails targets don't like win jdk location

Wondering if anyone else on 8.1.2 and windows has seen this when running a grails target:

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[C:\groovy\grails\grails-1.1.1/bin/grails.bat, war]

ERROR: JAVA_HOME is set to an invalid directory: C:/Program Files/Java/jdk1.6.0_13

Please set the JAVA_HOME variable in your environment to match the
location of your Java installation.
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It just started happening, afaict, with Idea 8.1.2.  I'll report as a bug as long as I can determine that its not just something in my env.  It looks like the new grails stuff was not tested with windows paths with spaces.  The grails commands work fine on the command line.