problem identified Ok, for some reason the genRandomPassword utility is hanging. Not sure why - it works on my suse9 box (which probably isn't up to date).
Try this:
sh -x /opt/zimbra/bin/zmjava com.zimbra.cs.util.RandomPassword 8 10
And tell me what it outputs (lots of stuff, should be).
Does /opt/zimbra/java/bin/java exist? What do you get from
/opt/zimbra/java/bin/java -version |