shark, just to clarify you are still getting the startup jvm error? Can you repaste the entire error for us? (use CTRL-C on a dialog to copy its contents from Windows)

Ok, got the problem resolved.
I had to actually put -D in front of the optons in the VM arguments window.
As in:

Optional Java VM arguments:
----------------------------------
-Dlog4j.configuration=file:///c:/Dev/java/temp/log4jVLJConfigDebug.xml
-Dweblogic.Name=myserver
-Dweblogic.ProductionModeEnabled=false

Could be viewed as a minor usability issue, since it is kind of redundant.

Thanks for everybody's help!