Are you able to launch the IDE by entering the following command from a command line?
C:\Users\Mike\Downloads\arduino-1.0-windows\arduino-1.0\java\bin\javaw.exe -Xms128m -Xmx128m -classpath "lib;C:\Users\Mike\Downloads\arduino-1.0-windows\arduino-1.0\java\lib\tools.jar;lib\pde.jar;lib\core.jar;lib\jna.jar;lib\ecj.jar;lib\RXTXcomm.jar" processing.app.Base
If not, use the following command and reply with the output.txt file that is created:
C:\Users\Mike\Downloads\arduino-1.0-windows\arduino-1.0\java\bin\java.exe -verbose -Xms128m -Xmx128m -classpath "lib;C:\Users\Mike\Downloads\arduino-1.0-windows\arduino-1.0\java\lib\tools.jar;lib\pde.jar;lib\core.jar;lib\jna.jar;lib\ecj.jar;lib\RXTXcomm.jar" processing.app.Base > output.txt