FULL PRODUCT VERSION :
java version " 1.7.0_10 "
Java(TM) SE Runtime Environment (build 1.7.0_10-b18)
Java HotSpot(TM) 64-Bit Server VM (build 23.6-b04, mixed mode)

ADDITIONAL OS VERSION INFORMATION :
Windows Server 2008 R2 Standard

Output from command prompt:
Microsoft Windows [Version 6.1.7600]
Copyright (c) 2009 Microsoft Corporation. All rights reserved.

A DESCRIPTION OF THE PROBLEM :
Trying to run a Java program (e.g. a simple " Hello World " ) with the -Dfile.separator option specified causes an ExceptionInInitializerError.

java -Dfile.separator=\ Test

REGRESSION. Last worked in version 7

EXPECTED VERSUS ACTUAL BEHAVIOR :
EXPECTED -
System output:
 " Hello! "
ACTUAL -
Stacktrace (see below)

ERROR MESSAGES/STACK TRACES THAT OCCUR :
Error occurred during initialization of VM
java.lang.ExceptionInInitializerError
    at java.lang.Runtime.loadLibrary0(Runtime.java:841)
    at java.lang.System.loadLibrary(System.java:1084)
    at java.lang.System.initializeSystemClass(System.java:1145)
Caused by: java.lang.StringIndexOutOfBoundsException: String index out of range: 0
    at java.lang.String.charAt(String.java:658)
    at java.io.Win32FileSystem.<init>(Win32FileSystem.java:40)
    at java.io.WinNTFileSystem.<init>(WinNTFileSystem.java:37)
    at java.io.FileSystem.getFileSystem(Native Method)
    at java.io.File.<clinit>(File.java:156)
    at java.lang.Runtime.loadLibrary0(Runtime.java:841)
    at java.lang.System.loadLibrary(System.java:1084)
    at java.lang.System.initializeSystemClass(System.java:1145)

REPRODUCIBILITY :
This bug can be reproduced always.

---------- BEGIN SOURCE ----------
public class Test {
  public static void main(String... args) {
    System.out.println( " Hello! " );
  }
}

---------- END SOURCE ----------

CUSTOMER SUBMITTED WORKAROUND :
Downgrade to Java 1.7.0_09