Timed out error with Kernel JRE bundle

Tested platform : windows xp
Tested bundle : http://j2se.east/plugin/1.6.0_05-nightly/2007-08-30.23_28

This problem is found while running automation test of deployment. When the test tries to launch java control panel, the following error message is displayed "The request was timed out waiting for a gateway" with the title "Server problem - Deployment Toolkit". The tests started failing after this error dialog.

The log file shows the following : DownloadManager.download caught: java.io.FileNotFoundException: C:/Java/jre6/lib/bundles/urls.properties (The process cannot access the file because it is being used by another process)

Also the error dialog "Bad installation. Error invoking Java VM (execv) c:\java\jre6\bin\javaw.exe" is seen during the automation.
The result location : http://sqindia.india.sun.com/disk17/deployment/malathi/results/6u5b3pit/Standalone_deployment_deployment_2007_09_04_11_25_14/tonga.output/Summary.report

Image files attached.