I’ve found this as a common error with multiple causes in Windows systems.
In order to solve it we need to take into account 2 main points:
1 – Do not use Java 7 version in your PATH or CLASSPATH and I mean, use Java 6 because Red5 1.0 is not working propery with Java 7.
2 – Maybe you have another instance of Red5 running in console or as a service, so that’s the problem.