I'm not sure if this is needed for step.
When NX starts, it searches for installed java versions in c:\apps\Java\jre7x64 and "C:\Program Files\Java\jre7", and defines UGII_JAVA_HOME. You should see in your syslog. If the step is failing, look in your temp folder for a syslog - if it is required, you should see it there.
Mark Rief
NX CAM Customer Success
Siemens PLM Software