STS is failing to start on my machine

I was trying to setup Spring mvc projects on eclipse. Basic projects were working fine. But using restful services, jersey etc started giving so many errors related to dependencies. So I am planning to move on to STS.

I am using STS 2.9.2. It was giving me "failed to create java virtual machine". So I added

-vm C:\Program Files\Java\jdk1.7.0\bin\javaw.exe

to STS.ini. But now it is giving me following fatal error

Below is STS.ini

-vm
C:\Program Files\Java\jdk1.7.0\bin\javaw.exe
-startup
plugins/org.eclipse.equinox.launcher_1.2.0.v20110502.jar
--launcher.library
plugins/org.eclipse.equinox.launcher.win32.win32.x86_1.1.100.v20110502
-product
com.springsource.sts.ide
--launcher.defaultAction
openFile
--launcher.XXMaxPermSize
884M
-vmargs
-Dosgi.requiredJavaVersion=1.5
-Xmn128m
-Xms256m
-Xmx768m
-Xss1m
-XX:PermSize=384m
-XX:MaxPermSize=768m

• Eclipse is working perfectly on my machine.
• I don't want to use Maven or other build tools to solve dependencies related problem due to limited internet speed.

Initially I was using STS zip version. Now I installed STS from executable. And it is working fine for me. I required to setup HOME variable, that's all.

Attaching the STS.ini from installed STS (for reference).

-vm
C:\Program Files\Java\jdk1.7.0\bin\javaw.exe
-startup
plugins/org.eclipse.equinox.launcher_1.3.0.v20120522-1813.jar
--launcher.library
plugins/org.eclipse.equinox.launcher.win32.win32.x86_1.1.200.v20120522-1813
-product
org.springsource.sts.ide
--launcher.defaultAction
openFile
--launcher.XXMaxPermSize
256M
-vmargs
-Dosgi.requiredJavaVersion=1.5
-Xms40m
-Xmx768m
-XX:MaxPermSize=256m