Getting error when i run selenium script in Eclipse, please help

I am getting mentioned below error when i am executing script in eclipse.java.lang.RuntimeException: Could not start Selenium session: Internal Server Error
at com.thoughtworks.selenium.DefaultSelenium.start(DefaultSelenium.java:89)
at com.thoughtworks.selenium.SeleneseTestBase.setUp(SeleneseTestBase.java:123)
at com.thoughtworks.selenium.SeleneseTestBase.setUp(SeleneseTestBase.java:104)
at com.thoughtworks.selenium.SeleneseTestCase.setUp(SeleneseTestCase.java:78)
at Test.Loginpage.setUp(Loginpage.java:12)
Caused by: com.thoughtworks.selenium.SeleniumException: Internal Server Error
at com.thoughtworks.selenium.HttpCommandProcessor.throwAssertionFailureExceptionOrError(HttpCommandProcessor.java:97)
at com.thoughtworks.selenium.HttpCommandProcessor.getCommandResponseAsString(HttpCommandProcessor.java:168)
at com.thoughtworks.selenium.HttpCommandProcessor.executeCommandOnServlet(HttpCommandProcessor.java:104)
at com.thoughtworks.selenium.HttpCommandProcessor.doCommand(HttpCommandProcessor.java:86)
at com.thoughtworks.selenium.HttpCommandProcessor.getString(HttpCommandProcessor.java:262)
at com.thoughtworks.selenium.HttpCommandProcessor.start(HttpCommandProcessor.java:223)
at com.thoughtworks.selenium.DefaultSelenium.start(DefaultSelenium.java:81)
... 26 more
... Removed 22 stack frames
Click to hide stack frames java.lang.RuntimeException: Could not start Selenium session: Internal Server Error
at com.thoughtworks.selenium.DefaultSelenium.start(DefaultSelenium.java:89)
at com.thoughtworks.selenium.SeleneseTestBase.setUp(SeleneseTestBase.java:123)
at com.thoughtworks.selenium.SeleneseTestBase.setUp(SeleneseTestBase.java:104)
at com.thoughtworks.selenium.SeleneseTestCase.setUp(SeleneseTestCase.java:78)
at Test.Loginpage.setUp(Loginpage.java:12)
at sun.reflect.NativeMethodAccessorImpl.invoke0(Native Method)
at sun.reflect.NativeMethodAccessorImpl.invoke(Unknown Source)
at sun.reflect.DelegatingMethodAccessorImpl.invoke(Unknown Source)
at java.lang.reflect.Method.invoke(Unknown Source)
at org.testng.internal.MethodHelper.invokeMethod(MethodHelper.java:643)
at org.testng.internal.Invoker.invokeConfigurationMethod(Invoker.java:446)
at org.testng.internal.Invoker.invokeConfigurations(Invoker.java:162)
at org.testng.internal.Invoker.invokeConfigurations(Invoker.java:92)
at org.testng.internal.TestMethodWorker.invokeBeforeClassMethods(TestMethodWorker.java:183)
at org.testng.internal.TestMethodWorker.run(TestMethodWorker.java:115)
at org.testng.TestRunner.runWorkers(TestRunner.java:953)
at org.testng.TestRunner.privateRun(TestRunner.java:633)
at org.testng.TestRunner.run(TestRunner.java:505)
at org.testng.SuiteRunner.runTest(SuiteRunner.java:359)
at org.testng.SuiteRunner.runSequentially(SuiteRunner.java:354)
at org.testng.SuiteRunner.privateRun(SuiteRunner.java:316)
at org.testng.SuiteRunner.run(SuiteRunner.java:195)
at org.testng.TestNG.createAndRunSuiteRunners(TestNG.java:903)
at org.testng.TestNG.runSuitesLocally(TestNG.java:872)
at org.testng.TestNG.run(TestNG.java:780)
at org.testng.remote.RemoteTestNG.run(RemoteTestNG.java:75)
at org.testng.remote.RemoteTestNG.main(RemoteTestNG.java:127)
Caused by: com.thoughtworks.selenium.SeleniumException: Internal Server Error
at com.thoughtworks.selenium.HttpCommandProcessor.throwAssertionFailureExceptionOrError(HttpCommandProcessor.java:97)
at com.thoughtworks.selenium.HttpCommandProcessor.getCommandResponseAsString(HttpCommandProcessor.java:168)
at com.thoughtworks.selenium.HttpCommandProcessor.executeCommandOnServlet(HttpCommandProcessor.java:104)
at com.thoughtworks.selenium.HttpCommandProcessor.doCommand(HttpCommandProcessor.java:86)
at com.thoughtworks.selenium.HttpCommandProcessor.getString(HttpCommandProcessor.java:262)
at com.thoughtworks.selenium.HttpCommandProcessor.start(HttpCommandProcessor.java:223)
at com.thoughtworks.selenium.DefaultSelenium.start(DefaultSelenium.java:81)
... 26 more

Do you have an rcserver instance running where your tests are pointed to? And is it properly configured?

Thanks for ur response,

Yes, I have created a bat file for running RC server instance
java -jar C:\selenium-remote-control-1.0-beta-2\selenium-server-1.0-beta-2\selenium-server.jar -interactive

And my test script is in diffirent folder D:\Test
Let me know if i am doing wrong or need correction required in my set up...