The preferred way is to use the server's ias.config file found in the directory <installdir>/var/servers/<servername>/adm/properties. Environment variables do work, if you use the right options, but are discouraged. (For more information about Java options, see the documentation for the ias command in the Borland AppServer User's Guide)

If this doesn't work, post the following to the IAS newsgroup:

• Your java.options
• How you run the ias command (include all flags)
• The output from ias -debug
• The error_log file with the exception in it
• A directory listing (including full path details) of where your DB driver is
• Which DB you're using
• What version of the driver you have

Also, check that you are using the default jserv.policy.