NetBeans 4.0 setup?

[Dillinger4]

I just dl'ed NetBeans 4.0 and im having a bit of a problem. I've ran tomcat from dos before and when i encountered the same error i knew how to fix it, but using NetBeans i haven't a clue. This is the output when i try and Build(f11) from NetBeans.

The BASEDIR environment variable is not defined
This environment variable is needed to run this program
Out of environment space
Invalid switch
Out of environment space
Using CATALINA_BASE:   C:\WINDOWS\.netbeans\4.0\jakarta-tomcat-5.0.28_base
Using CATALINA_HOME:   C:\Program Files\netbeans-4.0\nb4.0\jakarta-tomcat-5.0.28
Using CATALINA_TMPDIR: 
Using JAVA_HOME:       C:\jdk1.5.0
Out of environment space
Out of environment space
Out of environment space
Bad command or file name

I looked up how to define the base directory and NetBeans says the following.

Base Directory. Specifies the base directory for the Tomcat Server. You can set this property when you add a Tomcat Server to the Server Registry. If you set a base directory, then that is where the Tomcat configuration files reside. One reason for specifying a separate base directory is to allow more than one user to use the same server. If no base directory is specified, then the configuration files reside in the home directory.

I still don't know what to do though. Anyone encounter the same problem?