Tried to run a Java applet embedded in a web site in IE7 browser, returned a Java(TM) Plug-in Fatal Error - "Several Java Virtual machines running in the same process caused an error".

How to Reproduce:
System Environment:
OS: Windows XP Sp2
Browser: IE 7.0
Firewall: Zone Alarm activated
Antivirus - Symantec Antivirus enabled
System RAM: 1 GB
JRE: 1.5.0_10-b03

Type following address in the browser (IE7), for example:
http://www.java.com/en/download/help/testvm.xml

will bring forth error dialog (screen shot attached) with message:
"Java(TM) Plug-in Fatal Error - "Several Java Virtual machines running in the same process caused an error"

On the same system, the applet performed well in Firefox 2.0.0.1.

This bug is always reproducible. If required, system is available for vnc.