See http://netbeans.org/bugzilla/show_bug.cgi?id=194822 for the original description.

Unzip the attached sources and compile.
Step into FontTrack constructor and ask for StackFrame.getArgumentValues().
This exception is thrown:
com.sun.jdi.InternalException: Unexpected JDWP Error: 35
at com.sun.tools.jdi.JDWPException.toJDIException(JDWPException.java:65)
at com.sun.tools.jdi.StackFrameImpl.getArgumentValues(StackFrameImpl.java:358)

I'm not aware of any workaround.
Here is the config info from the netbeans link:

Build: NetBeans IDE Dev (Build 201101280000)
VM: Java HotSpot(TM) Client VM, 19.0-b09, Java(TM) SE Runtime Environment,
1.6.0_23-b05
OS: Windows XP

I'm not sure why the SR lists JDK7 as the release since
I don't see any information that indicates JDK7.
> I'm not sure why the SR lists JDK7 as the release since
> I don't see any information that indicates JDK7.

I was reproducing this on JDK 7, to make sure that the bug is still in the latest release.
But you're right that I should probably enter the older JDK version.