Here is my batch script for running hub and node. Script is executed where are placed selenium jars.
As you see variable HERE
should point to Java folder
set HERE=%CD%
set CHROME_VERSION=chromedriver_win_23.0.1240.0
set CHROME_DRIVER_LOC=%HERE%\%CHROME_VERSION%\chromedriver.exe
set JAVA_HOME=%HERE%\jdk1.7.0_10
set PATH=%JAVA_HOME%\jre\bin;%JAVA_HOME%\bin;%HERE%\%CHROME_VERSION%\;%PATH%
set SELENIUM_VERSION=2.28.0
set HUB_URL=http://192.198.1.102:4444/grid/register
start java -jar selenium-server-standalone-%SELENIUM_VERSION%.jar -role hub
start java -jar selenium-server-standalone-%SELENIUM_VERSION%.jar -role node
-Dwebdriver.chrome.driver= %CHROME_DRIVER_LOC% -hub %HUB_URL% -port 5556 -nodeConfig webconfig.txt
EDIT for comment:
So here is folder tree to clearly understand what is happening
-|
|-selenium-server-standalone-2.28.0.jar
|-chromedriver_win_23.0.1240.0
|-chromedriver.exe
|-jdk1.7.0_10
|-jre
|-bin etc..
|-thisScript.bat
This script should be totally independent from PATH setting mentioned in your question. PATH variable overrides system PATH variable only for that script - personally you can try different configuration and paths but I was only using above setup and it worked as intended.
I also found tutorial what I had been using when setting up my selenium grid enviroment: http://rationaleemotions.wordpress.com/2012/01/23/setting-up-grid2-and-working-with-it/