Are you running the .sh file in the same folder as "jre"? The two files must be in the same folder. In case it keeps showing you the error, try opening the "The Island.sh" in a text editor and change the part that says "/jre/bin/java.exe" into "java".
Yes it is in the same folder. I edited it with a normal Text editor (only the first few lines were readable, rest was crypted, just in case that is important) and changed it, same error but with "java" instead.