Current directory is invalid when running batch file

Current directory is invalid when running batch file

This is my run.bat file:
@echo off
start compactau.exe
"c:\program files\java\jre7\bin\java" -Xms512m -Xmx768m -cp
jio.jar;log4j-1.2.9.jar;auagent.jar Auagent auagent.conf
Pause
When I run this file, I get the error the current directory is invalid. I
uninstalled and reinstalled Java, then changed my Java location to
c:\java\bin\java and adjusted my batch file like this:
@echo off
start compactau.exe
"c:\java\bin\java" -Xms512m -Xmx768m -cp
jio.jar;log4j-1.2.9.jar;auagent.jar Auagent auagent.conf
Pause
But I still get the the current directory is invalid. How is this possible
when I created the destination and folder name?