With an alpha3 version of the .hotjava directory in your home directory do the following:

1. Go to /net/tachyon/export/disk1/Mosaic/docs/java.sun.com/JDK-prebeta1/applets/TicTacToe
 
2. run the appletviewer like this:
        % appletviewer -debug example1.html
 
3. Type run at the prompt and see this:
        Loading jdb ...
        0xee3013c0:class(sun.applet.AppletViewer)
        > run
        run sun.applet.AppletViewer example1.html
        running ...
        Uncaught exception: java.io.IOException <Null Object>/.hotjava/properties
                at java.io.FileOutputStream.<init>(FileOutputStream.java)
                at sun.applet.AppletCopyright.action(AppletCopyright.java:82)
                at java.awt.Component.handleEvent(Component.java:791)
                at java.awt.Component.postEvent(Component.java:741)
                at java.awt.Component.postEvent(Component.java:747)
                at java.awt.Component.postEvent(Component.java:747)
                at sun.awt.motif.MButtonPeer.action(MButtonPeer.java:39)
                at java.lang.Thread.run(Thread.java)

4. NOTE: once I deleted my old .hotjava directory, this worked successfully