java: Cannot find JDK '1.7' for module

I've just installed IntelliJ on Windows 8 (and 7). I then use the 'Java Hello World' Sample as my project.

I then selected the JDK that was installed (C:\Program Files\Java\jdk1.7.0_10). Project creates successfully and I can see all the classes associated with the project etc. When I "make the project" I get the following error:

Compilation completed with 1 error and 0 warnings in 2 sec
1 error 
0 warnings
java: Cannot find JDK '1.7' for module 'TEST'

No matter what I do I cannot compile any Java code under Windows8/IntelliJ

I have tried the following:

• Invalidating cache.
• Switching to 32bit JDK instead of 64bit
• Idea64.exe instead of idea.exe
• Installing 1.6 incase it was a 1.7 issue??
• Changed the JAVA_HOME to point to different versions (ie currently C:\Program Files\Java\jdk1.7.0_10)

I'm lost as to why this is happening.