The background to this bug can be found in this thread:
  http://forums.java.net/jive/thread.jspa?threadID=15324&tstart=0

On Win32 if you install Mustang using the installer and invoke this:

%SystemRoot%\system32\java -javaagent:

then it pops up a dialog with this message:

java.exe - Unable to Locate Component
This application has failed to start because jli.dll was not found. Re-installing the application may fix this problem

In this example, a java agent has not been specified and we would instead expect it to fail with this:

Error opening zip file or JAR manifest missing :
Error occurred during initialization of VM
agent library failed to init: instrument

The issue appears to have crept in at b65 and may be use to the import of jli.dll by instrument.dll.

The issue does not occur if the -version argument is used:
%SystemRoot%\system32\java -version:1.6 -javaagent: