Setting a new custom security manager when one is already installed requires a Runtime permission - 'setSecurityManager' to be given in the policy file. However, no such permission is listed in the policytool and what I see is the entry 'setSecurityManage' under Runtime Permissions. So I have to manually edit the policy file saved, to change 'setSecurityManage' to 'setSecurityManager'. Without doing this, the application continues to throw the security exception.

I reproduced this on WinXP with jdk6u10 as well as jdk6-FCS. Not reproducible with jdk5.0-FCS. Hence it is a regression introduced in jdk6.

To reproduce, run the policytool. Go to 'Add Permission' -> 'Runtime Permission' and check the 'setSecurityManager' permission. If the trailing 'r' is missing, it is bug.