We were using EnvInject 1.35 in various free-style jobs, but after we upgraded to 1.36 jobs started failing.
This is the reason:
1) On the slave node (in this case, a windows XP slave node) JAVA_HOME is pointing to version 1.25. I can verify this by going to Jenkins->Manage Jenkins->Manage Nodes->MyWinXPNode->"view log", and sure enough the node's environment variables have JAVA_HOME pointing to 1.25
2) After upgraded to EnvInject 1.36, the jobs started failing because JAVA_HOME has been overwritten to 1.27, which does not exist on the node. In fact, I don't know where this is being set because the master does not have java 1.27 either!

The only option that is is present in the job is this:
Inject environment variables to the build process
Properties Content:
TEMP=c:\\windows
temp
TMP=c:\\windows
temp
(everything else under "Inject Environment Variables" is blank.

I have not tried the latest version, 1.38, but I will, since all the jobs are currently broken and I have nothing else to lose...

If it doesn't fix it, then the workaround is to go to EnvInject 1.35, but that does not work on multiconfiguration jobs.

I'll keep you posted. If this is fixed in 1.38, I will update this Jira.