Hello,
This problem exists when jre is installed in C:\Program Files (x86).
To fix the problem first uninstall Java and install it again in C:\Java\jre6.
After this go to Cotrol Panel --> System --> Advanced system settings --> Environment variables. In the System variables list look for all C ...

When do you plan to add RedBox? In the RC2 or in the final version?
I don't see it in the current RC1.