I don't really know where to start on debugging this. Does the
underlying (Sun) Java environment on your machine work successfully?

Definitely to start the browser relaying process, I have a menu link
called "MDS Simulator" in the same menu group as the other
Blackberry-related tools. It runs "C:\Program Files\Research In
Motion\BlackBerry JDE 3.7\MDS\load.bat"

That *should* open a console window and invoke a Java application;
specifically the contents of that bat file on my machine are as
follows:

@ECHO off
IF /I NOT [%BMDS_ENV_SET%]==[true] call setBMDSEnv
start java -classpath %BMDS_CLASSPATH%
net.rim.application.ipproxyservice.IPProxyServiceApplication
-log.console.dump %1 %2 %3 %4 %5 %6 %7 %8 %9

That being the case, if you aren't seeing a console window (or one is
coming up and closing very shortly afterwards) all I can guess is that
the java runtime (ie Java.exe) is not in the search path for your
account. If you open a command-prompt and run Java (ie java(enter) at
a C:\ prompt), do you see the help information on its runtime
parameters displayed? If not, then see what might be making your Java
runtime non-functional (ie perhaps uninstall and reinstall the latest
runtime from Sun).

If the Java help information IS displayed when you run it, then maybe
the classpath information isn't correctly pointing to the location
that the MDS application was installed to, or it didn't install
completely. Not sure how to resolve this, other than to try the normal
heavy-handed way (ie uninstall and install again).

Definitely you DO need the MDS Simulator to be running (ie console
window with various debugging output) before the web browser in the
emulator is going to be at all useful for you.

ted.h.