OK, here's the result from debug...
C:\Program Files (x86)\Arduino>arduino_debug
Error occurred during initialization of VM
java/lang/UnsupportedClassVersionError: java/lang/Object : Unsupported major.min
or version 52.0
Java reports that it's at version 7 Update 21 (1.7.0_21-b11) Trying to do an update results in Java telling me I have the latest version.
Hope this helps
It works now. I discovered that when I uninstalled 1.6.0 that a number of files were left in the java directory under arduino. Once I deleted those files and reinstalled 1.6.1 it now launches without error.