Installation hangs during java update from mustang to mustang update 1

Tested OS : Windows 98 SE only
Tested Build : mustang build 55

Steps to reproduce:
1. Install mustang build 55
2. Run Run1.reg (file attached)
3. Launch Java Control Panel
4. Go to Update tab and click Update Now button
java cup icon with popup "New updates are ready for download" will be displayed in the system tray
5. Right click on the icon and download the updates
6. Once it is downloaded, righ click on the icon and install the mustang update 1
Installation hangs and mustang update 1 installation not completed

Note : Tested on 2 different machines and is reproducible.
Image file attached