This is a very common error; the "Search" feature on top would have lots and lots of hiys for this...
From the RIM web site:
To resolve this issue, perform a clean reload of the BlackBerry® Device Software on the BlackBerry smartphone using the application loader tool. For instructions, refer to KB11320 at Rim support site
I have the same ridiculous problem with my two month old 9700; you'd think that Blackberry could provide a reasonable fix or a product without these issues at some time in the last four years or so - totally unacceptable. The issue is that 'Desktop Manager' WON'T RECOGNIZE the phone that's surely attached via USB. No updates can be made until the phone is recognized which it WON'T DO. Phone keeps cycling through 'JVM Error 102' and loading screen...right back to error. Am I able to use the included Blackberry CD/software to remedy this nonsense, or am I forced to mickey-mouse around with third-party software fixes, having no real idea what I'm doing. If it's the latter - I'll take this paper-weight back in the morning.