Pollo installation failed

I have the following problem:
I downloaded and unziped Pollo, but when trying to run the poolo.bat file, I get the following error message:

C:\Downloads\pollo-0.3.5-bin\bin>set CLASSPATH=..\lib\pollo.jar;..\lib\pollohelp
;jar;..\lib\endorsed\dom3-xmlParserAPIs.jar;..\lib\endorsed\dom3-xercesImpl.jar.
lib\commons-digester.jar;..\lib\avalon-configuration.jar;..\lib\commons-beanu\..
.tils.jar;..\lib\commons-collections.jar;..\lib\log4j-core.jar;..\lib\jaxen-core
\..;jar;..\lib\jaxen-dom.jar;..\lib\saxpath.jar;..\lib\msv.jar;..\lib\xsdlib.jar
lib\relaxngDatatype.jar;..\lib\isorelax.jar;..\lib\jhbasic.jar;..\conf;..\build
java -Djava.endorsed.dirs=..\lib\endorsed org.outerj.pollo.Pollo

Syntax error

I use Win98, java version 1.4.0_01.
In the autoexec.bat the JAVA_HOME is set:
set JAVA_HOME=C:\j2sdk1.4.0_01

Can you please tell me what is the problem?

Thank you very much for help.
Anna