So basically where i messed up was i need to have it point to the java.jar in the folder not just the folder?
so this?
C:\Users\panda\Desktop\DigimonServer\java8\bin\java -jar -Xmx4096M -Xms4096M -jar digimonworld.jar nogui
PAUSE
edit-
Got it working, thankfully however it will not let me allocate more than 1g of ram. Fixed, thank you!