I hit this problem too, and found this article. For Maven3, changing my environment variable name from M2_HOME to M3_HOME did the trick. I am on a Mac running OSX 10.9 with JDK 1.7. Hope this helps.
Note: Please delete M2_HOME, if already set. Eg: unset M2_HOME
Even though the question is answered I would like to add that, if you are getting the above mentioned error, be sure that you have downloaded the Binary file.
The source file should only be downloaded if you are an advanced user and that you know how to deal with it.
I have had quite a share of people downloading the wrong file, seniors and juniors
I was having this same problem and was able to resolve it by carefully redoing the Environment Variables:
Also, I made them all System Variables, not User Variables like the Maven instructions say. When you
echo %Path%
Make sure you can see the %M2% and %JAVA_HOME% variables completely expanded, i.e. :
C:\Users\afairchild>echo %Path%
C:\Program Files\Apache Software Foundation\apache-maven-3.0.4\bin;C:\Program Files\Java\jdk1.7.0_09\bin; [etc]
Had this issue on two different Ubuntu 12.04 installs, despite the installs being done by apt-get. Issue was M2_HOME.
Fixed with:
export M2_HOME=/usr/share/maven
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