Issue with new update: Cannot run program....

I've been struggling trying to get this new update to work correctly. I went as far as deleting the java and xmage folder to start over, but no luck.
Here is the error I receive. When trying to start server and client, my command prompt is blank. This is what is showing in the xmage_launcher.log file.
ERROR 2015-08-08 22:22:23,003 Error staring process =>[AWT-EventQueue-0] Utilities.launchProcess
java.io.IOException: Cannot run program "C:\Users\David\Downloads\java\jre1.7.0_75\bin\java" (in directory "C:\Users\David\Downloads\xmage\mage-server"): CreateProcess error=267, The directory name is invalid
One more thing to note: the xmage folder that was created is empty. I am sure this has something to do as well. when i went through the initial install, the xmage install was less than a second, so something is wrong here. This is the text from the installer. Any ideas?
Reading config from (removed URL) /xmage/config.json
XMage folder: C:\Users\David\Downloads\xmage
XMage Launcher version installed: 0.3.4
XMage Launcher version available: 0.3.4
Java version installed:
Java version available: 1.7.0_75
Java not found
XMage version installed:
XMage version available: 1.4.3v0 (2015-08-06)
XMage not found
Downloading Java from (remove URL)otn-pub/java/jdk/7u75-b13/jre-7u75-windows-x64.tar.gz
Installing Java ...Done
Downloading XMage from (remove URL)/xmage_1_4_3v0o
Installing XMage ...Done
Java version installed: 1.7.0_75
Java version available: 1.7.0_75
XMage version installed: 1.4.3v0 (2015-08-06)
XMage version available: 1.4.3v0 (2015-08-06)
Here is the error I receive. When trying to start server and client, my command prompt is blank. This is what is showing in the xmage_launcher.log file.
ERROR 2015-08-08 22:22:23,003 Error staring process =>[AWT-EventQueue-0] Utilities.launchProcess
java.io.IOException: Cannot run program "C:\Users\David\Downloads\java\jre1.7.0_75\bin\java" (in directory "C:\Users\David\Downloads\xmage\mage-server"): CreateProcess error=267, The directory name is invalid
One more thing to note: the xmage folder that was created is empty. I am sure this has something to do as well. when i went through the initial install, the xmage install was less than a second, so something is wrong here. This is the text from the installer. Any ideas?
Reading config from (removed URL) /xmage/config.json
XMage folder: C:\Users\David\Downloads\xmage
XMage Launcher version installed: 0.3.4
XMage Launcher version available: 0.3.4
Java version installed:
Java version available: 1.7.0_75
Java not found
XMage version installed:
XMage version available: 1.4.3v0 (2015-08-06)
XMage not found
Downloading Java from (remove URL)otn-pub/java/jdk/7u75-b13/jre-7u75-windows-x64.tar.gz
Installing Java ...Done
Downloading XMage from (remove URL)/xmage_1_4_3v0o
Installing XMage ...Done
Java version installed: 1.7.0_75
Java version available: 1.7.0_75
XMage version installed: 1.4.3v0 (2015-08-06)
XMage version available: 1.4.3v0 (2015-08-06)