It is the sp4 download that is failing.

For sponsors specifically, msiexec.exe is failing when passing in an MSI via URL. Here is the log snippet for the proxy failure in the YTB.msi:

MSI (s) (3C:C8) [12:30:08:850]: Using WinHttp to perform URL download
MSI (s) (3C:C8) [12:30:08:850]: File path is a URL. Downloading file. . .
MSI (s) (3C:C8) [12:30:08:862]: Msi WinHttp: Performing auto proxy detection
MSI (s) (3C:C8) [12:30:09:325]: MSI WinHttp: Proxy Settings Proxy: rmdc-proxy.oracle.com:80 | Bypass: (none) | AccessType: 3
MSI (s) (3C:C8) [12:30:09:967]: Download of URL resource http://javadl-esd.sun.com/update/1.7.0/sp-1.7.0-ea-b127/sp4/sp4.msi failed with last error 12150
MSI (s) (3C:C8) [12:30:09:968]: MainEngineThread is returning 2

The problem in this instance is that the msi download engine cannot negotiate the proxy.

To reproduce this, Cory and Megan, do this:

On a windows machine, like xp or vista or windows 7:
1. Install Firefox if you don't already have it.
2. Set your default browser to be firefox.
3. Run this installer:
http://javadl.sun.com/webapps/download/GetFile/1.7.0-ea-b127/windows-i586/jre-7-ea-windows-i586-iftw.exe

If your system proxy is set to webcache.central.sun.com:8080 the sponsor will work.
If your system proxy is set to oracle's proxy, it will not.

THIS demonstrates the problem.