I am having the same problem. I had IDE 1.6.5 installed and it gave me this result so I uninstalled 1.6.5 and installed 1.0.6 and got the following message
This report would have more information with
"Show verbose output during compilation"
enabled in File > Preferences.
Arduino: 1.0.6 (Windows 7), Board: "Arduino Mega 2560 or Mega ADK"
Binary sketch size: 11,438 bytes (of a 258,048 byte maximum)
processing.app.SerialNotFoundException: Serial port 'COM1' not found. Did you select the right one from the Tools > Serial Port menu?
at processing.app.Serial.<init>(Serial.java:191)
at processing.app.Serial.<init>(Serial.java:77)
at processing.app.debug.Uploader.flushSerialBuffer(Uploader.java:77)
at processing.app.debug.AvrdudeUploader.uploadViaBootloader(AvrdudeUploader.java:175)
at processing.app.debug.AvrdudeUploader.uploadUsingPreferences(AvrdudeUploader.java:67)
at processing.app.Sketch.upload(Sketch.java:1666)
at processing.app.Sketch.exportApplet(Sketch.java:1622)
at processing.app.Sketch.exportApplet(Sketch.java:1594)
at processing.app.Editor$DefaultExportHandler.run(Editor.java:2382)
at java.lang.Thread.run(Thread.java:619)
My "Serial Port" option in the Tools menu is grayed out, and when trying to install the drivers via Device Manager, my (Windows 7 x64) will only allow me to navigate to the Drivers folder, and not the arduino.inf file. Sorry to jack this thread, but I didn't want to start a new thread for the same/similar issue. Please help us.