FULL PRODUCT VERSION :
java version "1.6.0_01"
Java(TM) SE Runtime Environment (build 1.6.0_01-b06)
Java HotSpot(TM) Client VM (build 1.6.0_01-b06, mixed mode, sharing)

ADDITIONAL OS VERSION INFORMATION :
Microsoft Windows XP [Version 5.1.2600]

A DESCRIPTION OF THE PROBLEM :
When IE is embedded as an ActiveX control into a Java application the Java Plug-in will not load any Java applets. Instead it gives the following error message,

Java Plug-in Fatal Error

Cannot load class sun/plugin/JavaRunTime
The Bridge was installed at <C:\PRORA~1\Java\J2RE16~1.1_0>
but the class is not there.
Modify the registry key to reflect the new bridge location.
The key is HKEY_LOCAL_MACHINE\SOFTWARE\JavaSoft\Java Plug-in
or change your CLASSPATH to includethe new directory

If the same page is accessed through IE directly then it works fine.

There are various Java frameworks that are expierencing this problem.

Here are some example links that I found that discuss the problem.

Google Web Toolkit: http://groups.google.com/group/Google-Web-Toolkit/browse_thread/thread/e457dd98484be4bd

SWT: https://bugs.eclipse.org/bugs/show_bug.cgi?id=59506



STEPS TO FOLLOW TO REPRODUCE THE PROBLEM :
Use Eclipse Browser or the Google Web Toolkit Browser to load a HTML page that contains an applet.

Alternatively run this example
http://www.codeproject.com/java/javacom.asp?df=100&forumid=651&exp=0&select=831063


EXPECTED VERSUS ACTUAL BEHAVIOR :
EXPECTED -
The applet should load and run and the page be displayed as normal.
ACTUAL -
The following error message is displayed and the process is completely locked and must be terminated via the Task Manager.

Java Plug-in Fatal Error

Cannot load class sun/plugin/JavaRunTime
The Bridge was installed at <C:\PRORA~1\Java\J2RE16~1.1_0>
but the class is not there.
Modify the registry key to reflect the new bridge location.
The key is HKEY_LOCAL_MACHINE\SOFTWARE\JavaSoft\Java Plug-in
or change your CLASSPATH to includethe new directory


ERROR MESSAGES/STACK TRACES THAT OCCUR :
Java Plug-in Fatal Error

Cannot load class sun/plugin/JavaRunTime
The Bridge was installed at <C:\PRORA~1\Java\J2RE16~1.1_0>
but the class is not there.
Modify the registry key to reflect the new bridge location.
The key is HKEY_LOCAL_MACHINE\SOFTWARE\JavaSoft\Java Plug-in
or change your CLASSPATH to includethe new directory


REPRODUCIBILITY :
This bug can be reproduced always.

---------- BEGIN SOURCE ----------
Checkout the source code here

http://www.codeproject.com/java/javacom.asp?df=100&forumid=651&exp=0&select=831063

---------- END SOURCE ----------

CUSTOMER SUBMITTED WORKAROUND :
Disable the Java Plug-in. You can do this by going in to Java in the control panel and under the Advance page uncheck APPLET tag support in Internet Explorer.