You must set the ES_CLASSPATH var

I have searched and found no help on this - one was an internal bug re: CLASSPATH/ES_CLASSPATH, and one was on this group that went nowhere:

http://elasticsearch-users.115913.n3.nabble.com/Getting-an-error-of-ES-CLASSPATH-not-found-td3400994.html

I have installed elastic search on Kubuntu 12.04. I have the executable linked, and the daemon starter script (like apache, et al) at /etc/init.d

When I try to start, I get the following error:

You must set the ES_CLASSPATH var

No further information given. Indeed, I had no ES_CLASSPATH environment variable set. I tried setting it to where I found several JARs in elasticsearch:

/usr/local/share/elasticsearch/lib
/usr/local/share/elasticsearch/bin/service/lib

Then I get the following error:

Exception in thread "main" java.lang.NoClassDefFoundError: org/elasticsearch/bootstrap/ElasticSearch

Any advice as to what this variable should be?