FULL PRODUCT VERSION :
java version "1.6.0_07"
Java(TM) SE Runtime Environment (build 1.6.0_07-b06)
Java HotSpot(TM) Client VM (build 10.0-b23, mixed mode, sharing)


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

EXTRA RELEVANT SYSTEM CONFIGURATION :
Browsers: IE8, Firefox

A DESCRIPTION OF THE PROBLEM :
The persistence service denies access to codebase when used within an Applet.

STEPS TO FOLLOW TO REPRODUCE THE PROBLEM :
See the attached code. Which includes the HTML and the JNLP files.

EXPECTED VERSUS ACTUAL BEHAVIOR :
EXPECTED -
Data to be stored and retrieved locally.
ACTUAL -
No data stored or retrieved

ERROR MESSAGES/STACK TRACES THAT OCCUR :
java.net.MalformedURLException: Access to persistent storage denied for URL http://5lls221/DesktopHeatmaps/
at com.sun.jnlp.PersistenceServiceImpl.throwAccessDenied(Unknown Source)
at com.sun.jnlp.PersistenceServiceImpl.checkAccess(Unknown Source)
at com.sun.jnlp.PersistenceServiceImpl.get(Unknown Source)
at test.PersistenceTest.restoreSettings(PersistenceTest.java:84)
at test.PersistenceTest.startUp(PersistenceTest.java:76)
at test.PersistenceTest.init(PersistenceTest.java:157)
at sun.plugin2.applet.Plugin2Manager$AppletExecutionRunnable.run(Unknown Source)
at java.lang.Thread.run(Unknown Source)


REPRODUCIBILITY :
This bug can be reproduced always.

---------- BEGIN SOURCE ----------
Java Code:
-------------------------------------------------
package test;

import java.awt.BorderLayout;
import java.awt.Dimension;
import java.awt.Point;
import java.awt.event.ActionEvent;
import java.awt.event.ActionListener;
import java.io.*;
import java.net.MalformedURLException;
import java.net.URL;

import javax.jnlp.*;
import javax.swing.*;
import javax.swing.border.EmptyBorder;

/** A test of the PersistenceService of the web-start API.
@author Andrew Thompson
@version 2007/1/12
 */
public class PersistenceTest extends JApplet {

  JTextArea document;
  PersistenceService persistenceService = null;
  URL codebase = null;
  JCheckBox plaf;

  /** Assemble the GUI. */
  //PersistenceTest() {
  // super("JotPad");
  // setDefaultCloseOperation(JFrame.DO_NOTHING_ON_CLOSE);
  // this.addWindowListener(new WindowAdapter() {
  // public void windowClosing(WindowEvent we) {
  // storeSettings();
  // System.exit(0);
  // }
  // });
  //}
  private void startUp () {
    try {
      BasicService basicService =
        (BasicService)ServiceManager.
        lookup("javax.jnlp.BasicService");
      codebase = basicService.getCodeBase();
      persistenceService = (PersistenceService)ServiceManager.
      lookup("javax.jnlp.PersistenceService");
    } catch(UnavailableServiceException use) {
      use.printStackTrace();
      System.exit(0);
    }
    JPanel main = new JPanel( new BorderLayout(5,5) );

    document = new JTextArea();
    document.setLineWrap(true);
    document.setWrapStyleWord(true);
    JScrollPane scrollpane = new JScrollPane(
        document,
        ScrollPaneConstants.VERTICAL_SCROLLBAR_AS_NEEDED,
        ScrollPaneConstants.HORIZONTAL_SCROLLBAR_NEVER );
    scrollpane.setPreferredSize(new Dimension(300,350));
    main.add(scrollpane, BorderLayout.CENTER);

    plaf = new JCheckBox("System Look'n'Feel", false);
    plaf.addActionListener( new ActionListener() {
      public void actionPerformed(ActionEvent ae) {
        updateLookAndFeel( plaf.isSelected() );
      }
    } );
    main.add( plaf, BorderLayout.SOUTH );

    main.setBorder( new EmptyBorder(8,8,8,8) );
    getContentPane().add(main);

    // pack();
    // setLocationRelativeTo(null);

    restoreSettings();
  }

  public void restoreSettings() {
    try {
      long fileSize = 16000;

      FileContents appSettings = null;
      appSettings = persistenceService.get(codebase);
      ObjectInputStream ois = new
      ObjectInputStream( appSettings.getInputStream() );
      ApplicationCache cache = (ApplicationCache)ois.readObject();
      setSize( cache.getSize() );
      setLocation( cache.getLocation() );
      plaf.setSelected( cache.isSystemPLAF() );
      updateLookAndFeel( cache.isSystemPLAF() );
      document.setText( cache.getText() );
      ois.close();
    } catch(FileNotFoundException fnfe) {
      // create the cache
      try {
        long size = persistenceService.create(codebase, 16000);
        System.out.println( "Cache created - size: " + size );
      } catch(MalformedURLException murle) {
        System.err.println( "Application codebase is not a valid URL?!" );
        murle.printStackTrace();
      } catch(IOException ioe) {
        ioe.printStackTrace();
      }
    } catch (Exception e) {
      e.printStackTrace();
    }
  }

  public void storeSettings() {
    try {
      ApplicationCache cache = new ApplicationCache();
      cache.setSize( getSize() );
      cache.setLocation( getLocation() );
      cache.setSystemPLAF( plaf.isSelected() );
      cache.setText( document.getText() );
      FileContents fc = persistenceService.get(codebase);
      ObjectOutputStream oos = new ObjectOutputStream(fc.getOutputStream(true));
      oos.writeObject( cache );
      oos.flush();
      oos.close();
    } catch(Exception e) {
      e.printStackTrace();
    }
  }

  /** Update the PLAF to either the X-plat, or system specific versions. */
  public void updateLookAndFeel(boolean xPlat) {
    try {
      if (xPlat) {
        UIManager.setLookAndFeel(
            UIManager.getSystemLookAndFeelClassName() );
      } else {
        UIManager.setLookAndFeel(
            UIManager.getCrossPlatformLookAndFeelClassName() );
      }

      SwingUtilities.updateComponentTreeUI( this );
      //pack();
      validate();
    } catch (Exception exc) {
      System.err.println("Error loading L&F: " + exc);
    }
  }

  /** Construct the GUI and display it. If the user double clicked
    a file to start the application, begin measures to load that file. */
  public static void main(String[] args) {
    PersistenceTest pt = new PersistenceTest();
    pt.setVisible(true);
  }
  @Override
  public void init () {
    // TODO Auto-generated method stub
    System.out.println("init");
    super.init();
    startUp();
    System.out.println("started up");
  }
  @Override
  public void start () {
    // TODO Auto-generated method stub
    System.out.println("start");
    super.start();
  }
  @Override
  public void stop () {
    // TODO Auto-generated method stub
    super.stop();
    storeSettings();
  }

}

class ApplicationCache implements Serializable {
  public String text;
  public boolean systemPLAF;
  public Point location;
  public Dimension size;

  public String getText() {
    return text;
  }

  public void setText(String text) {
    this.text = text;
  }

  public boolean isSystemPLAF() {
    return systemPLAF;
  }

  public void setSystemPLAF(boolean systemPLAF) {
    this.systemPLAF = systemPLAF;
  }

  public Point getLocation() {
    return location;
  }

  public void setLocation(Point location) {
    this.location = location;
  }

  public Dimension getSize() {
    return size;
  }

  public void setSize(Dimension size) {
    this.size = size;
  }

  @Override
  public String toString() {
    return "ApplicationCache:\nSys. PLAF: " +
    systemPLAF +
    "\nLocation: " + location +
    "\nSize: " + size +
    "\nText: " + text;
  }
}
------------------------------------------------------------------------------------------
HTML:
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html>
    <head>
        <title>The Impermanence of All Things</title>
        <meta http-equiv="Content-Type" content="text/html; charset=windows-1252"/>
    </head>
    <body>
        
        <script src="http://www.java.com/js/deployJava.js"></script>
         <script>
            var attributes = {code:'test.PersistenceTest',
archive:'app/persistserv.jar',
width:'300', height:'800' } ;
            <!-- customize splash screen display options -->
            var parameters = {jnlp_href: 'app/persistserv.jnlp',
                                boxbgcolor: 'cyan',
                                boxborder: 'true',
                                centerimage: 'true'
            } ;
            deployJava.runApplet(attributes, parameters, '1.6');
         </script>
        <p>The applet's splash screen (or loading screen) has been customized.</p>
    </body>
</html>
--------------------------------------------------------------------------------
JNLP
<?xml version='1.0' encoding='UTF-8' ?>
<jnlp spec='1.0'
      codebase='http://5llS221/DesktopHeatmaps&#39;
      href='app/persistserv.jnlp'>
  <information>
    <title>JotPad</title>
    <vendor>Andrew Thompson</vendor>
    <description kind='one-line'>
      Test of the web-start PersistenceService
    </description>
    <shortcut online='false'>
      <desktop/>
    </shortcut>
  </information>
  <resources>
    <j2se version='1.2+' />
    <jar href='app/persistserv.jar' main='true' />
  </resources>
  <applet-desc name='PersistApplet'
main-class='test.PersistenceTest'
        width='300'
height='800'
/>
</jnlp>
---------- END SOURCE ----------

SUPPORT :
YES