java.exe crashes at start with fatal error

FULL PRODUCT VERSION :
java version "1.7.0_65"
Java(TM) SE Runtime Environment (build 1.7.0_65-b19)
Java HotSpot(TM) Client VM (build 24.65-b04, mixed mode, sharing)

A DESCRIPTION OF THE PROBLEM :
After I installed JRE 1.7.0_65 (using jre-7u65-windows-i586.exe) java.exe can't start at all - it just reports a fatal error:

C:\>java -version
#
# A fatal error has been detected by the Java Runtime Environment:
#
# Internal Error (virtualspace.cpp:125), pid=4488, tid=4496
# fatal error: os::release_memory failed
#
# JRE version: (7.0_65-b19) (build )
# Java VM: Java HotSpot(TM) Client VM (24.65-b04 mixed mode windows-x86 )
# Core dump written. Default location: C:\\hs_err_pid4488.mdmp
#
# An error report file with more information is saved as:
# C:\\hs_err_pid4488.log
#
# If you would like to submit a bug report, please visit:
# http://bugreport.sun.com/bugreport/crash.jsp
#

ERROR MESSAGES/STACK TRACES THAT OCCUR :
#
# A fatal error has been detected by the Java Runtime Environment:
#
# Internal Error (virtualspace.cpp:125), pid=4488, tid=4496
# fatal error: os::release_memory failed
#
# JRE version: (7.0_65-b19) (build )
# Java VM: Java HotSpot(TM) Client VM (24.65-b04 mixed mode windows-x86 )
# Core dump written. Default location: C:\\hs_err_pid4488.mdmp
#
# If you would like to submit a bug report, please visit:
# http://bugreport.sun.com/bugreport/crash.jsp
#

--------------- T H R E A D ---------------

Current thread (0x00859800): JavaThread "Unknown thread" [_thread_in_vm, id=4496, stack(0x00940000,0x00990000)]

Stack: [0x00940000,0x00990000], sp=0x0098f8f4, free space=318k
Native frames: (J=compiled Java code, j=interpreted, Vv=VM code, C=native code)
V [jvm.dll+0x190494]
V [jvm.dll+0x18a116]
V [jvm.dll+0x1661dc]
V [jvm.dll+0x1666cb]
V [jvm.dll+0x8a316]
V [jvm.dll+0x87da6]
V [jvm.dll+0x86a8e]
V [jvm.dll+0x90f03]
V [jvm.dll+0x13f9f4]
V [jvm.dll+0x1626fc]
V [jvm.dll+0xc9d6f]
C [java.exe+0x13c1]
C [java.exe+0x1e33]
C [java.exe+0xa601]
C [java.exe+0xa68b]
C [kernel32.dll+0x2484f]


--------------- P R O C E S S ---------------

Java Threads: ( => current thread )

Other Threads:

=>0x00859800 (exited) JavaThread "Unknown thread" [_thread_in_vm, id=4496, stack(0x00940000,0x00990000)]

VM state:not at safepoint (not fully initialized)

VM Mutex/Monitor currently owned by a thread: None

GC Heap History (0 events):
No events

Deoptimization events (0 events):
No events

Internal exceptions (0 events):
No events

Events (0 events):
No events


Dynamic libraries:
0x00400000 - 0x0042f000 C:\WINDOWS\system32\java.exe
0x7c800000 - 0x7c8c3000 C:\WINDOWS\system32\ntdll.dll
0x77e40000 - 0x77f44000 C:\WINDOWS\system32\kernel32.dll
0x7d1e0000 - 0x7d27c000 C:\WINDOWS\system32\ADVAPI32.dll
0x77c50000 - 0x77cf1000 C:\WINDOWS\system32\RPCRT4.dll
0x76f50000 - 0x76f63000 C:\WINDOWS\system32\Secur32.dll
0x77380000 - 0x77411000 C:\WINDOWS\system32\USER32.dll
0x77c00000 - 0x77c49000 C:\WINDOWS\system32\GDI32.dll
0x77420000 - 0x77523000 C:\WINDOWS\WinSxS\x86_Microsoft.Windows.Common-Controls_6595b64144ccf1df_6.0.3790.5190_x-ww_319264BE\COMCTL32.dll
0x77ba0000 - 0x77bfa000 C:\WINDOWS\system32\msvcrt.dll
0x7d180000 - 0x7d1d2000 C:\WINDOWS\system32\SHLWAPI.dll
0x76290000 - 0x762ad000 C:\WINDOWS\system32\IMM32.DLL
0x78aa0000 - 0x78b5f000 C:\Program Files\Java\jre7\bin\msvcr100.dll
0x6e770000 - 0x6eaf8000 C:\Program Files\Java\jre7\bin\client\jvm.dll
0x71bb0000 - 0x71bb9000 C:\WINDOWS\system32\WSOCK32.dll
0x71c00000 - 0x71c17000 C:\WINDOWS\system32\WS2_32.dll
0x71bf0000 - 0x71bf8000 C:\WINDOWS\system32\WS2HELP.dll
0x76aa0000 - 0x76acd000 C:\WINDOWS\system32\WINMM.dll
0x76b70000 - 0x76b7b000 C:\WINDOWS\system32\PSAPI.DLL
0x71bc0000 - 0x71bc8000 C:\WINDOWS\system32\rdpsnd.dll
0x771f0000 - 0x77201000 C:\WINDOWS\system32\WINSTA.dll
0x71c40000 - 0x71c97000 C:\WINDOWS\system32\NETAPI32.dll
0x6e6c0000 - 0x6e6cc000 C:\Program Files\Java\jre7\bin\verify.dll
0x6d480000 - 0x6d4a0000 C:\Program Files\Java\jre7\bin\java.dll
0x6e750000 - 0x6e763000 C:\Program Files\Java\jre7\bin\zip.dll
0x03000000 - 0x0311b000 C:\WINDOWS\system32\DBGHELP.DLL

VM Arguments:
java_command: <unknown>
Launcher Type: SUN_STANDARD

Environment Variables:
PATH=C:\Program Files\Support Tools\;C:\Program Files\Windows Resource Kits\Tools\;C:\WINDOWS\system32;C:\WINDOWS;C:\WINDOWS\System32\Wbem;C:\Program Files\Microsoft SQL Server\80\Tools\Binn\;C:\Program Files\Microsoft SQL Server\90\Tools\binn\;C:\WINDOWS\system32\WindowsPowerShell\v1.0;C:\Program Files\ESET\ESET File Security\;C:\Program Files\Tcl\bin;
USERNAME=Administrator
OS=Windows_NT
PROCESSOR_IDENTIFIER=x86 Family 15 Model 3 Stepping 4, GenuineIntel



--------------- S Y S T E M ---------------

OS: Windows Server 2003 family Build 3790 Service Pack 2

CPU:total 4 (1 cores per cpu, 2 threads per core) family 15 model 3 stepping 4, cmov, cx8, fxsr, mmx, sse, sse2, sse3, ht, tsc

Memory: 4k page, physical 3406780k(2150536k free), swap 5373044k(4327432k free)

vm_info: Java HotSpot(TM) Client VM (24.65-b04) for windows-x86 JRE (1.7.0_65-b19), built on Jul 9 2014 18:04:11 by "java_re" with unknown MS VC++:1600

time: Fri Jul 18 09:00:38 2014
elapsed time: 0 seconds



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