1. Install jdk
2. Set system variables
eg.
JAVA_HOME = C:Program Files (x86)Javajdk1.6.0_43
classpath= C:Program Files (x86)Javajdk1.6.0_43lib ools.jar
path = C:Program Files (x86)Javajdk1.6.0_43in
3. Run-time Setting in Loadrunner