Merlin build46 cannot read JCE policy files properly. So one cannot use JCE in Merlin b46 at all. Note: JCE works in b45.

I found the problem is that the StreamTokenizer cannot read the JCE policy files properly: it doesn't see the EOF when it should. Note: this only happens if that policy file is in a jar file. I attached a test program. Please let me know if you need more information.