Oh this is a bit embarrassing. I've fixed it.
I followed the advice of Ricardo Ferreira in the comments to the above bug and it worked. Here is what he said in JIRA;
I did have the same issue and I found my problem.
I'm running alfresco 3c on ubuntu 8.04, and my problem was related to my machine name (uname -a)… had different IP on /etc/hosts.
So I changed to IP from /sbin/ifconfig and it start well. I don't know if it will help, since your're a vista user, but maybe it related to machine name an IP…
I monkeyed about with my /etc/hosts and changed it so that the IP address from /sbin/ifconfig was aliased as the domain given by uname -a.
Thanks Ricardo ! That was driving me nuts.