It looks like some (ExactVM?) code from 1998 has been merged into 1.3.0.
In several files the handling of JVM_IO_INTR has been changed to no longer
throw an InterruptedIOException, presumably because the JVM_* function
has already thrown it. But the merged version of jvm.c does not
use CHECK_INTERRUPT() as expected (except in a deadend branch), so
the exception is never thrown. JDK 1.2.2 and 1.3.1 behave as expected.
Only 1.3.0 has the problem:

% cat a.java
import java.io.*;
import java.net.*;

class Interrupter extends Thread {
    Thread target;

    Interrupter(Thread t) {
target = t;
    }

    public void run() {
while (target.isAlive()) {
System.err.println("Sleeping...");
try {
Thread.sleep(1 * 1000);
} catch (Exception e) {
}
System.err.println("sending interrupt...");
target.interrupt();
}
    }
}

public class a {
    public static void main(String argv[]) {
try {
new Interrupter(Thread.currentThread()).start();

InetAddress localhost = InetAddress.getByName("localhost");
//InetAddress localhost = InetAddress.getLocalHost();

DatagramSocket s = new DatagramSocket();

byte[] buf = new byte[1000];
DatagramPacket recv = new DatagramPacket(buf, buf.length);

for( int i = 0; i < 3; i++ ) {
try{
System.err.println("Waiting for packet...");
// get their responses!
s.receive(recv);
System.out.println("Got packet at iteration " + i +
" with length " + recv.getLength());
} catch (Exception e) {
e.printStackTrace();
}
recv.setLength(buf.length);
}
} catch (Exception e) {
System.out.println("Unexpected Exception:" + e);
}
    }
}


% /usr/local/java/jdk1.2.2/solaris/bin/java -version
java version "1.2.2"
Classic VM (build JDK-1.2.2-W, green threads, sunwjit)

% /usr/local/java/jdk1.2.2/solaris/bin/java a
Waiting for packet...
Sleeping...
sending interrupt...
Sleeping...
java.io.InterruptedIOException: operation interrupted
at java.net.PlainDatagramSocketImpl.receive(Native Method)
at java.net.DatagramSocket.receive(DatagramSocket.java, Compiled Code)
at a.main(a.java, Compiled Code)
Waiting for packet...
sending interrupt...
Sleeping...
java.io.InterruptedIOException: operation interrupted
at java.net.PlainDatagramSocketImpl.receive(Native Method)
at java.net.DatagramSocket.receive(DatagramSocket.java, Compiled Code)
at a.main(a.java, Compiled Code)
Waiting for packet...
sending interrupt...
Sleeping...
java.io.InterruptedIOException: operation interrupted
at java.net.PlainDatagramSocketImpl.receive(Native Method)
at java.net.DatagramSocket.receive(DatagramSocket.java, Compiled Code)
at a.main(a.java, Compiled Code)
sending interrupt...

% /usr/local/java/jdk1.3/solaris/bin/java -version
java version "1.3.0"
Java(TM) 2 Runtime Environment, Standard Edition (build 1.3.0)
Java HotSpot(TM) Client VM (build 1.3.0, mixed mode)

% /usr/local/java/jdk1.3/solaris/bin/java a
Sleeping...
Waiting for packet...
sending interrupt...
Sleeping...
Got packet at iteration 0 with length 0
Waiting for packet...
sending interrupt...
Sleeping...
Got packet at iteration 1 with length 0
Waiting for packet...
sending interrupt...
Sleeping...
Got packet at iteration 2 with length 0
sending interrupt...
                                                                          
dean.long@Eng 2000-10-21