I get the following error when trying to run the sbt plugin through a windows path that contains spaces.

[workspace] $ cmd.exe /C "C:\Program Files\Java\jdk1.7.0_51\bin\java" -Xms1024M -Xmx1024M -XX:+CMSClassUnloadingEnabled -Dsbt.log.noformat=true -jar "C:\Program Files (x86)\sbt\bin\sbt-launch.jar" runMain

'C:\Program' is not recognized as an internal or external command, operable program or batch file.
Build step 'Build using sbt' changed build result to FAILURE

I think the correct syntax is to place the whole command in extra quotes in immediately after cmd /c and at the end.

So this works for me when I run it through the command line:

cmd.exe /C " "C:\Program Files\Java\jdk1.7.0_51\bin\java" -Xms1024M -Xmx1024M -XX:+CMSClassUnloadingEnabled -Dsbt.log.noformat=true -jar "C:\Program Files (x86)\sbt\bin\sbt-launch.jar" runMain "