Installer fails to copy 1.4 java.exe into win systems folder when 1.3 is present

Platform : All Windows
Build : Merlin B92

Steps to Reproduce :

Released JRE : j2re-1_3_0_05-win-i \ j2re-1_3_1_02-win
JRE English : j2re-1_4_0-fcs-bin-b92-win-30_jan_2002

1.) Install Released JRE/JDK
2.) Install JRE-English(Merlin B92) over released JRE-I18n
3.) After installation , launch a standalone app or do a java -version on the command window

Result : This is the output I see on Command Prompt

-----------------------------------------------------------------------------

Registry key 'Software\JavaSoft\Java Runtime Environment\CurrentVersion'
has value '1.4', but '1.3' is required.
Error: could not find java.dll
Error: could not find Java 2 Runtime Environment.

-----------------------------------------------------------------------------

Here are the two location's where java.dll is stored ,

C:\Program Files\JavaSoft\JRE\1.3.0_05\bin
C:\Program Files\Java\j2re1.4.0\bin

Here is the location where JRE is

C:\Program Files\JavaSoft\JRE\1.3.0_05
C:\Program Files\Java\j2re1.4.0


* Also I have attached the Copy of Registry keys ,