When the security policy restricts a self-signed or untrusted applet from running (for example, the user has de-selected the security option labeled "Allow user to grant permissions to content from an untrusted authority"), the current behavior is confusing, distracting and just plain ugly. I have attached a diagram that shows the current flow.

1. User encounters a page with an applet signed with a certificate from an untrusted authority (i.e. self-signed)
2. Since they do not want to run self-signed apps, they have de-selected the "Allow user to grant permissions to content from an untrusted authority".
3. An error dialog is displayed that says "Failed to validate certificate. The application will not be executed."
4. If the user clicks the Details button on this dialog, they will see a "More Information" dialog with the detailed text that says "Your security configuration will not allow granting permission to self signed certificates". Along with a link to allow the user to view the certificate details.
5. When the user clicks "OK" on the error dialog, they are returned to the page and the app will fail with a General Exception (exit code -1) because it is not allowed to run. This error will generate a second error dialog that requires the user to click "OK" to clear.
6. The user is returned to the page where the applet area includes the message "Error. Click for details".
7. If the user clicks the applet area, they are shown a third error dialog that says "The application failed to run."
8. If the user clicks the "Details" button on this dialog, they will be shown the Java Console with the General Exception.