Did you update already existing SAP JVM version or did you replace/upgrade your JDK to SAP JVM ? I think yours is second case.
I don't think java_home is needed anymore in case of sap jvm, but profile parameter should be verified.
I hope you already have gone through the Notes -
Note 1611326 - Patching the SAP JVM 4.1 manually for NetWeaver 2004 and 7.0
Note 1495160 - SAP JVM as replacement for Partner JDKs 1.4.2