you need to set  CATALINA_HOME with tomcat  path not of java(jdk) path.
This is the problem  only .
In your case your CATALINA_HOME and JAVA_HOME variables
must be like as below :

CATALINA_HOME=D:\Tomcat 4.1
JAVA_HOME=D:\j2sdk1.4.2

These both variables are needed  to set to run  tomcat .
If you are using win98 then write this in autoexec.bat file and
if you are using win2K /XP/NT set environment  Variales .
OR
you can set both of these variables in catalina.bat file also .

I pref. to set this in either autoexec.bat or as a environment variables.