Are you able to create a domain manually by doing the following:
D:
cd \GlassFish3.1
bin\asadmin create-domain domain1
Since it appears that you are using Windows 7 or Windows Vista, did you
run the installer as Administrator? Specifically, not just logged in as
Administrator, but right clicking on the .exe file and selecting "Run as
Administrator". If you don't do this, then even though you selected the
install location as D:\GlassFish3.1, your files will actually be put
into a "virtual filesystem" because of the Windows UAC feature, and then
GlassFish will not work properly.
Tom