So, this was annoying. My Cisco ASDM is version 1.5(68). It works on my desktop, but not my brand new vm. I would continuously get the Unable to Launch Device Manager from <ip address or hostname> error. Very annoying. Both Java version 1.7.0. But! The desktop was update 45, the vm was update 51. So, my next quest, try and hunt down version 45. What a pain. Finally got though it. Here is the URL to the cab file http://java.sun.com/update/1.7.0/jinstall-7u51-windows-i586.cab. A cab file can easily be opened using windows explorer so no need to get any different tools or utilities. Inside of the cab file, there is a jiinstall.exe program. That is the online installer for java 1.7.0 update 45.

Ok, now I have java 1.7.0 Update 45 installed. Time to get my ASDM to launch with it. Open up the shortcut to the launcher, the path needs to change from, what is probably on yours as well,

C:\Windows\SysWOW64\javaw.exe -Xms64m -Xmx512m -Dsun.swing.enableImprovedDragGesture=true -classpath lzma.jar;jploader.jar;asdm-launcher.jar;retroweaver-rt-2.0.jar com.cisco.launcher.Launcher

to

"C:\Program Files (x86)\Java\jre1.7.0_45\bin\javaw.exe" -Xms64m -Xmx512m -Dsun.swing.enableImprovedDragGesture=true -classpath lzma.jar;jploader.jar;asdm-launcher.jar;retroweaver-rt-2.0.jar com.cisco.launcher.Launcher

Your path may be different depending on if you are on a 64 or 32 bit system, and whether or not you installed it into the same place, note, this was the default that it automatically installed to. Windows will get mad at you and put up a nice error message if you get the path wrong. Hopefully this will help out some other people that ran into the same problem as me.