This probably won't be much help, but:
OpenElectribeEditor is built on Eclipse (an IDE), so some of these problems are similar to issues that people have seen when running Eclipse. In retrospect, I should not have built this on Eclipse (but I wanted to learn something new). Anyways, here's a post with someone having the same issue:
http://stackoverflow.com/questions/12426810/eclipse-wont-start-no-java-virtual-machine-was-foundInstead of an eclipse.ini, this program uses: OpenElectribeEditor.ini
You could try specifying the -vm open there.
I've also read that this problem could occur if you have a 32 bit jvm installed (i.e. when you installed java, you installed the 32 bit version, not the 64 bit version).
Can you open a command prompt, and run:
java -version
That should tell if you have a 32 or 64 bit JVM installed.
Hopefully I can help figure this out. If we figure this issue out, I'll try to add this to the wiki page (or create an FAQ).
Thanks for the feedback! Let me know if this helps at all...