Hey StudentABC - I have steered you wrong because I missed that you are using the dev edition. [which doesn't come with instance creation scripts]
What worked for me is to ignore the tcserver-ctl.bat script. (I got the same error as you did and my install path does not have space and i am on WinXP). Just use the "startup.bat" script to start the instance instead:
Code:
C:\installs\sts\tc-server-6.0.20.C\bin>set JAVA_HOME="C:\installs\ers455-test\j6sdk"
C:\installs\sts\tc-server-6.0.20.C\bin>startup
Using CATALINA_BASE: C:\installs\sts\tc-server-6.0.20.C
Using CATALINA_HOME: C:\installs\sts\tc-server-6.0.20.C
Using CATALINA_TMPDIR: C:\installs\sts\tc-server-6.0.20.C\temp
Using JRE_HOME: "C:\installs\ers455-test\j6sdk"
No guarantee since you are on win7, but that should hopefully get your tcServer instance up and running.