Recently, JBDS users usually report "path not found" error when they user JBossWS tools to generate Web Service code in Windows OS, after I got Windows OS installed in my desktop and reproduced the issue, the issue is that JAVA_HOME is empty, so that the wsconsume.bat and wsprovider.bat do not work.
I read the code in the two files, it try to get the "java" command path by the following code:
set JAVA=%JAVA_HOME%\bin\java

if users do not set JAVA_HOME, it does not work, no sure if you guys have any special consideration.
run.bat of JBossAS do it like this:

f "x%JAVA_HOME%" == "x" (
set JAVA=java
echo JAVA_HOME is not set. Unexpected results may occur.
echo Set JAVA_HOME to the directory of your local JDK to avoid this message.
) else (
set "JAVA=%JAVA_HOME%\bin\java"
if exist "%JAVA_HOME%\lib\tools.jar" (
set "JAVAC_JAR=%JAVA_HOME%\lib\tools.jar"
)
)