Info*Engine requires Java 2 Software Development Kit (SDK) version 1.3. This product was formally titled the Java Development Kit (JDK). You must install a copy of SDK that is compatible with your platform before running PTC.Setup. The Info*Engine Installation and Configuration Guide documents where you can find platform-specific information about SDK versions.
PTC.Setup attempts to locate the SDK on the current host, displaying its search results in the SDK Directory field. If the located version is not the version you want to use, you can enter the full path to your SDK installation directory or you can click the folder icon and use the Directory Browser navigational tool to select the location of the SDK software.