I'm not sure if this is a bug of jsvc or newest jdk lack of backward
compatibility.

you running into problems if you try to use:

jsvc -jvm server

because jsvc doesn't find the server jvm without jvm.cfg.

This fix works for me:
cd /usr/java/j2re1.4.2_04/lib
ln -s i386/jvm.cfg

or

cd /usr/java/j2sdk1.4.2_04/jre/lib
ln -s i386/jvm.cfg


Greetz,
)ngo