AS RSE gives null pointer when using AS 7 local RSE

java.lang.NullPointerException
at org.eclipse.rse.internal.services.local.shells.LocalShellThread.init(LocalShellThread.java:188)
at org.eclipse.rse.internal.services.local.shells.LocalShellThread.<init>(LocalShellThread.java:95)
at org.eclipse.rse.internal.services.local.shells.LocalHostShell.<init>(LocalHostShell.java:39)
at org.eclipse.rse.internal.services.local.shells.LocalShellService.runCommand(LocalShellService.java:62)
at org.eclipse.rse.services.shells.AbstractShellService.runCommand(AbstractShellService.java:53)
at org.jboss.ide.eclipse.as.rse.core.RSEHostShellModel$ServerShellModel.createStartupShell(RSEHostShellModel.java:80)
at org.jboss.ide.eclipse.as.rse.core.RSELaunchDelegate.actualLaunch(RSELaunchDelegate.java:77)
at org.jboss.ide.eclipse.as.core.server.internal.launch.JBossServerStartupLaunchConfiguration.actualLaunch(JBossServerStartupLaunchConfiguration.java:113)
at org.jboss.ide.eclipse.as.core.server.internal.launch.AbstractJBossLaunchConfigType.launch(AbstractJBossLaunchConfigType.java:77)
at org.eclipse.debug.internal.core.LaunchConfiguration.launch(LaunchConfiguration.java:854)
at org.eclipse.debug.internal.core.LaunchConfiguration.launch(LaunchConfiguration.java:703)
at org.eclipse.debug.internal.core.LaunchConfiguration.launch(LaunchConfiguration.java:696)
at org.eclipse.wst.server.core.internal.Server.startImpl2(Server.java:3404)
at org.eclipse.wst.server.core.internal.Server.startImpl(Server.java:3342)
at org.eclipse.wst.server.core.internal.Server$StartJob.run(Server.java:363)
at org.eclipse.core.internal.jobs.Worker.run(Worker.java:54)