The customer upgraded to 1.4.2_04 since a z-order panel switching problem has been fixed here.
But their application does not seem to be working any more.The runtime settings are not taking effect.
The Runtime permissions set using the .java.policy are not found to be taking effect. The error
received in java console is
[java.security.AccessControlException: access denied
(javax.security.auth.AuthPermission createLoginContext)]

The policy file for the application has
  permission javax.security.auth.AuthPermission "createLoginContext";

Attached is a sample applet which needs a run time permission and
property permission. Steps to be followed are

1. Extract the zip file
2. Put the html and jar files in any web server
3. Edit the machine name and port number in .java.policy file
4. Add/Modify the policy file in your user_home/java_home directory
5. Access TestApplet.html in IE where j2re1.4.0_04 plugin is installed
6. Click on Test button.

You can see that the property permissions are granted whereas the
runtime permission is not.
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