FULL PRODUCT VERSION :
java version "1.7.0_04"
Java(TM) SE Runtime Environment (build 1.7.0_04-b22)
Java HotSpot(TM) Client VM (build 23.0-b21, mixed mode, sharing)

ADDITIONAL OS VERSION INFORMATION :
Microsoft Windows [Version 6.1.7601

A DESCRIPTION OF THE PROBLEM :
default Java Web Start 1.7.0_04 (32-Bit) cache directory in Windows 7 (64-Bit) is
\Users\<user>\AppData\Local\Sun\Java\Deployment\cache, but location of deployment.properties is
\Users\<user>\AppData\LocalLow\Sun\Java\Deployment\cache

Note:
Java Web Start 1.6.0_32 (32-Bit and 64-Bit) and Java Web Webstart 1.7.0_04 (64-Bit) has
\Users\<user>\AppData\LocalLow\Sun\Java\Deployment\cache
as default cache directory

REGRESSION. Last worked in version 7

STEPS TO FOLLOW TO REPRODUCE THE PROBLEM :
delete all web start related directories in AppData and start Java Web Start 1.7.0 Cache Viewer

EXPECTED VERSUS ACTUAL BEHAVIOR :
EXPECTED -
default cache directory is
\Users\<user>\AppData\LocalLow\Sun\Java\Deployment\cache
ACTUAL -
default cache directory is
\Users\<user>\AppData\Local\Sun\Java\Deployment\cache

REPRODUCIBILITY :
This bug can be reproduced always.

CUSTOMER SUBMITTED WORKAROUND :
change cache directory with Java Control Panel to
\Users\<user>\AppData\LocalLow\Sun\Java\Deployment\cache