As of the promoted build 43, new plug-in hasn't been integrated in jdk 7 yet. The problem reported below is strictly in the context of the classic plug-in. Until jdk 7 includes the new plug-in, we don't know yet whether this issue can be reproducible with jre 7-new plug-in. It is also important to note that with respect to the classic plug-in, this is a regression since the latest 6u12-b04. This is specific to IE browser as it works fine using FF 3.0.x/ jre 7 classic plug-in

Tested Release: jre 7 -b43 , jre 6u12-b04
       Browser: IE 7, IE 6, FF 3.0.5
       OS: 32-bit Vista-business(sp1), XP-pro(sp3)

Selected Pogo game applets to reproduce the issue: Backgammon, Bridge.
(Note: not all pogo applets display this problem)

Steps to reproduce:
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1) Install jre 7 -b43 onto the test system
2) Using IE 7 to browse pogo backgammon applet:
http://board-games.pogo.com/games/backgammon
3) Sign into the game page
4) Click 'Play Now' to play Backgammon game

If you see the following message, then the problem is reproducible:
" You need to install Java...
Pogo.com games use the Java plug-in. You either do not have Java installed or you have a version that is incompatible with our games. It does not cost you anything to install Java...."

(See attached screenshot for details- please note that the java console displayed in the screenshot is for the demonstration of jre7-b43 classic plug-in existence, not being recognized/invoked by those pogo applets)