With a downloaded and installed version of Visual Studio Code 1.2.1, and a 64bit version of node.exe msi placed in my working directory (I am assuming that is correct), how
The cause for me receiving this error was trying the new pre-release VSCode JS debugger.
If you opted in, change via User settings:
"debug.javascript.usePreview": true|false
Everything in my normal configuration and integrated terminal was correct and finding executables. I wasted a lot of time trying other things!