The issue is sometimes an environment variable that causes the launch of the LG process (java.exe) to use the wrong JRE libraries. In your case, this is what the case was, you had a "classpath" environment variable. Sometimes, though, it can also be an environment variable with the word "JAVA" in it. You can run the command to check for this:
set | find "JAVA"
...or just "set" and look through the output.
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Do you also get that issue when you manually execute a check virtual user?
If yes if you check the task manager while starting your check virtual user do you see a "java" process starting?
That issue might be that the LG process is blocked. It could be a firewall or even some system resources issues. You can check the load generator log files accessible through the menu "Help-->Open logs folder...". Check all the loadgenerator* log files.
