Error installing Ant: ANT_HOME is set incorrectly

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It sounds like you have it setup right. What happens if you try something like this, which worked for me:

C:\>set ANT_HOME=C:\apache-ant-1.8.1

C:\>set JAVA_HOME=C:\jdk1.6.0_24

C:\>set PATH=%ANT_HOME%\bin;%JAVA_HOME%\bin

C:\>ant -version
Apache Ant version 1.8.1 compiled on April 30 2010

This also worked for me by setting up environment variables, like so:

Ant Env

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