The cfcompile utility can be used to either precompile ColdFusion into Java class files, or to create CFM pages as Java byte code for sourceless distribution. To utilize this utility for ColdFusion MX 7 in the J2EE configuration, one must first set these three variables: CFUSION_HOME, J2EEJAR, and WEBINF. That's because these variables are not automatically populated during the CFMX 7 J2EE installation.
This TechNote gives instructions on how to set these variables before using the cfcompile utility. Using the cfcompile Utility on ColdFusion MX 7 J2EE Configuration