Unable to create Java Virtual Machine/QP2TERM Failures

We upgraded to V6R1 back in November. Java is now failing because it can’t start the JVM: “Unable to create Java Virtual Machine.” Fortunately, we currently don’t do much with Java.

Any thoughts based on my analysis below would be appreciated.

I don't do the OS installs, but the install appears to be correct if I'm reading the display licensed programs correctly:
Licensed Product
Program Option Description
5761JC1 *BASE IBM Toolbox for Java
5761JV1 *BASE IBM Developer Kit for Java
5761JV1 7 Java Developer Kit 5.0
5761JV1 8 J2SE 5.0 32 bit
5761JV1 9 J2SE 5.0 64 bit

If I do
SBMJOB CMD(QSH CMD('java -version'))

I get
“Unable to create Java Virtual Machine.”

WRKENVVAR LEVEL(*SYS) shows this:

Name Value
POWERTECH_AB_ALW_SELF '1'
SKIPWASPLUGIN '1'

My reading of the documentation says this set of environment variables should default to use the option 8 JVM.

I tried:
ADDENVVAR ENVVAR(JAVA_HOME) VALUE('/QOpenSys/QIBM/ProdData/JavaVM/jdk50/32bit') LEVEL(*SYS)

It doesn’t fix the problem.

There is no /qibm/userdata/Java400/SystemDefault.properties. However,If I create
/home/SLENNON/SystemDefault.properties
which contains
java.version=1.5
I get this, which seems correct:

java version "1.5.0"
Java(TM) 2 Runtime Environment, Standard Edition (build 1.5.0_17-b04)
Classic VM (build 1.5, build JDK-1.5, native threads, jitc)

As I understand it, the jdk50/32bit runs in the PASE environment. We appear to have PASE installed.
Licensed Product
Program Option Description
5761SS1 30 Qshell
5761SS1 31 Domain Name System
5761SS1 33 Portable App Solutions Environment

However, CALL QP2TERM fails with a machine check:

call qp2term
Function error X'1720' in machine instruction. Internal dump identifier
(ID) 01003E8D.
Dump output directed to spooled file 1, job 355368/SLENNON/QPADEV000J
created on system PILOT on 02/26/10 13:21:41.
Application error. MCH3203 unmonitored by QP2SYS at statement
0000000119, instruction X'0000'.