Cannot run simple hello app

Tutors at our school have requested Dr Java so they can learn to code using Java. I have downloaded and installed Java jdk 7u9 for Windows 7 64bit and Dr Java stable 20120818-r5686 and when running a simple Hello World app it gives the error "Static Error : Undefined Class 'Hello'

The code is below;
public class Hello {

public static void main(String[] args) {

System.out.println("hello learners");

}

}

This is a copy of the code the tutor has tested and receives this above error. I have tried the exact same code using another IDE with the same version of Java called jGRASP and it works fine.

I have attached the system properties so hopefully someone can see what the issue is. When installing on my own personal laptop at home it works fine.

System Properties:
DrJava Version drjava-20120818-r5686
DrJava Build Time 20120818-0422

drjava.debug.port = 54512
java.runtime.name = Java(TM) SE Runtime Environment
sun.boot.library.path = C:\Program Files\Java\jre7\bin
java.vm.version = 23.5-b02
java.vm.vendor = Oracle Corporation
java.vendor.url = http://java.oracle.com/
path.separator = ;
java.vm.name = Java HotSpot(TM) 64-Bit Server VM
file.encoding.pkg = sun.io
user.country = GB
user.script =
sun.java.launcher = SUN_STANDARD
sun.os.patch.level = Service Pack 1
java.vm.specification.name = Java Virtual Machine Specification
user.dir = <anonymized user.home>\Desktop\java
java.runtime.version = 1.7.0_09-b05
java.awt.graphicsenv = sun.awt.Win32GraphicsEnvironment
java.endorsed.dirs = C:\Program Files\Java\jre7\lib\endorsed
os.arch = amd64
java.io.tmpdir = C:\Users\JAMESB~1.002\AppData\Local\Temp\ line.separator = "\u000d\u000a"
java.vm.specification.vendor = Oracle Corporation
user.variant =
os.name = Windows 7
sun.jnu.encoding = Cp1252
java.library.path = C:\Program Files\Java\jre7\bin;C:\Windows\Sun\Java\bin;C:\Windows\system32;C:\Windows;C:\Windows\system32;C:\Windows;C:\Windows\System32\Wbem;C:\Windows\System32\WindowsPowerShell\v1.0\;C:\Program Files (x86)\Common Files\Roxio Shared\DLLShared\;C:\Program Files (x86)\Common Files\Roxio Shared\9.0\DLLShared\;C:\Program Files (x86)\Microsoft Application Virtualization Client;C:\Windows\idmu\common;C:\Program Files (x86)\QuickTime\QTSystem\;"C:\Program Files\Adobe\Adobe PDF iFilter 9 for 64-bit platforms\bin\";C:\Program Files\Java\jre7\bin;.
sun.awt.enableExtraMouseButtons = true
java.specification.name = Java Platform API Specification
java.class.version = 51.0
sun.management.compiler = HotSpot 64-Bit Tiered Compilers
os.version = 6.1
user.home = <anonymized user.home>
user.timezone = Europe/London
java.awt.printerjob = sun.awt.windows.WPrinterJob
file.encoding = Cp1252
java.specification.version = 1.7
java.class.path = <anonymized user.home>\Desktop\java\drjava-stable-20120818-r5686.exe
user.name = <anonymized user.name>
java.vm.specification.version = 1.7
sun.java.command = <anonymized user.home>\Desktop\java\drjava-stable-20120818-r5686.exe
java.home = C:\Program Files\Java\jre7
sun.arch.data.model = 64
user.language = en
java.specification.vendor = Oracle Corporation
awt.toolkit = sun.awt.windows.WToolkit
java.vm.info = mixed mode
java.version = 1.7.0_09
java.ext.dirs = C:\Program Files\Java\jre7\lib\ext;C:\Windows\Sun\Java\lib\ext
sun.boot.class.path = C:\Program Files\Java\jre7\lib\resources.jar;C:\Program Files\Java\jre7\lib\rt.jar;C:\Program Files\Java\jre7\lib\sunrsasign.jar;C:\Program Files\Java\jre7\lib\jsse.jar;C:\Program Files\Java\jre7\lib\jce.jar;C:\Program Files\Java\jre7\lib\charsets.jar;C:\Program Files\Java\jre7\lib\jfr.jar;C:\Program Files\Java\jre7\classes
java.vendor = Oracle Corporation
file.separator = \ java.vendor.url.bug = http://bugreport.sun.com/bugreport/
sun.io.unicode.encoding = UnicodeLittle
sun.cpu.endian = little
java.rmi.server.hostname = 127.0.0.1
sun.desktop = windows
sun.cpu.isalist = amd64

DrJava configuration file
In resource bundle edu.rice.cs.drjava.config.options:
nothing

In shadowed configuration:
javac.location = C:\\Program Files (x86)\\Java\\jdk1.7.0_03\\lib\\tools.jar
all.compiler.versions = true
key.delete.next = [shift DELETE]
key.delete.previous = [shift BACK_SPACE]
recent.files = [\\\\Staff02\\data\\JamesBarber\\Desktop\\java\\hello2.java,\\\\Staff02\\data\\JamesBarber\\Desktop\\java\\Hello.java,\\\\Staff02\\data\\JamesBarber\\Desktop\\java\\Hello.class,\\\\Staff02\\data\\JamesBarber\\Desktop\\java\\HelloWorldApp.java]
window.height = 705
window.width = 1137
window.x = 469
window.y = 144
last.dir = \\\\Staff02\\data\\JamesBarber\\Desktop\\java\\Hello.java
last.interactions.dir = \\\\Staff02\\data\\JamesBarber\\Desktop\\java
tabbedpanes.state = 2880 540 700 400
new.version.notification.last = 1351158318311
drjava.survey.notification.last = 1351160986287
drjava.survey.result.last = http://www.drjava.org/submit-usage.php?rev=5387&os.name=Windows%207&os.version=6.1&java.version=1.7.0_03&java.vendor=Oracle%20Corporation

Used memory: about 58.65 megabytes
Free memory: about 29.35 megabytes
Total memory: about 88 megabytes
Total memory can expand to: about 894.25 megabytes

Number of processors/cores: 4

Compiler Discovery Log:

Many Thanks