Q:

Unable to locate tools.jar. Expected to find it in C:\Program Files\Java\jre6\li b\tools.jar

When I try to run the following command I get an error:
$ ant -Dsdk.dir=/opt/google/appengine-java-sdk runserver -Dserver.host=192.168.1.10

Here is the error:

"Unable to locate tools.jar. Expected to find it in C:\Program
  Files\Java\jre6\li b\tools.jar".

I have given jdk path in JAVA_HOME variable as C:\PROGRA~1\Java\jdk1.6.0_25 as my jdk location is C:\Program Files (x86)\Java\jdk1.6.0_25.
What is the issue?  Please help me.Thanks in advance.
When I have tried to run the command ant -diagnostics , I got 
java.home : C:\Program Files\Java\jre6

A:

You should try adding %JAVA_HOME%\bin at the beginning of your PATH environment variable (given syntax assumes Windows of course).
As Peter Knego commented, tools.jar exists in the JDK, not the JRE, so you must make sure the JAVA_HOME points to your JDK directory.

