Modern compiler not found - looking for classic compiler error when using ant on the as/400

Has anyone had this problem when using ant on the As/400 to build their java
applications ?  I keep running into this problem.  Were are using the 1.3.1
version of the JDK.  Running V5R1.  I have set the *SYS level JAVA_HOME
environment variable to /QIBM/ProdData/Java400/jdk13/.  I still get 
 
    [javac] Modern compiler not found - looking for classic compiler 

Cannot use classic compiler, as it is not available. A common solution is to
set the environment variable JAVA_HOME to your jdk directory.

 

        Does anyone have any ideas as to what is causing this and why ?  I
can use the same build.xml and the same version of ant on my PC and it works
fine.  Using ant version apache-ant-1.5.3-1.  Any ideas  ?  

            Also,  have any of you guys used turnover for source control of
java objects in the IFS ?  We use WSDc 5.0 to develop our project.
Currently we are using Sourcesafe for source control,  but it has no methods
for distribution.  In our normal RPG development,  we use turnover for
source control as well as distribution.  We would like to have the same
implementation for our Java code,  but setting it up right in the IFS to
preserve the package directory tree seems to be difficult.  

        John McNeal