Click on the offline bundle (5.07 Build 1 located here: /net/jre.sfbay/p/v05/jdk/1.5.0_07/ea/b01/bundles/windows-i586/jdk-1_5_0_07-ea-windows-i586-p.exe@) installer to begin installation.

When install shield starts it will work fine for a moment or so, and then it will seemingly freeze up (you will know this is the case because the little sandtime will appear). If you hit ctrl-alt-delete and in the task manager it will be shown as not responding, depending on the machine specs. this can last a while. The installer will however eventually recover and then the install will proceed and work just fine.

I have seens this issue with 5.0u5 and 5.0u6 jdks. This issue is occurs on Windows ME, other platforms are fine.