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Error occurred during initialization of VM

I installed some software that setup JAVA_OPTIONS and JAVA_TOOL_OPTIONS environment variables. Now that software runs ok but all of my other java apps throw this error:
Error occurred during initialization of VM
Could not find agent library on the library path or in the local directory: jvmhook
Picked up JAVA_TOOL_OPTIONS: -agentlib:jvmhook
Picked up _JAVA_OPTIONS: -Xrunjvmhook -Xbootclasspath/a:C:\QTPINS~1\bin\JAVA_S~1\classes;C:\QTPINS~1\bin\JAVA_S~1\classes\jasmine.jar

I put the jvmhook.dll file in the same directory where my app is running from but still get the issue.
Anyone have any idea?
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I tried that already. I openend a command prompt and copied the file to the directory. But it still comes back with this message.
Can you copy the whole content of the command window please, starting from the prompt and attempted invocation?