No JVM installation found. Please install a 64-bit JDK.
It's asking for a 64-bit JDK. You say your environment variable is pointing at the following directory:
C:\Program Files (x86)\Java\jre7
There's two things wrong here. First, you're pointing to a JRE - Java Runtime Environment. This is not a JDK - Java Development Kit. The JRE is for running Java applications; the JDK is for developing Java applications. There's a significant difference there.
Secondly, as others have mentioned, you're pointing the environment variable to the 32-bit version. You need a 64-bit JDK. This will be installed at C:\Program Files\Java\jdk1.7.0_XX
or similar, by default.
You can acquire a JDK installation from Oracle.