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The default location offered by the download/install button in Add Server wizard on winxp is c:\Documents and Settings\, it contains space in path. When trying the start the server I get something like "cannot find path c:\Documents". I had to meve the v3 into a different location, then it works fine.
will resolve before FCS
It looks like Ludo addressed this... http://serverplugins.netbeans.org/source/browse/serverplugins/sun/hk2/src/org/netbeans/modules/j2ee/hk2/ide/Hk2StartRunnable.java?r1=1.2&r2=1.3