FULL PRODUCT VERSION :
Java Plug-in 10.5.1.255
Using JRE version 1.7.0_05-b05 Java HotSpot(TM) Client VM


ADDITIONAL OS VERSION INFORMATION :
Windows 7

A DESCRIPTION OF THE PROBLEM :
When you add an applet with javascript it doesn't always run in IE with Java 7. It works fine with FireFox and Chrome and it works in IE with Java 6.

Note this only happens when using javascript to add the applet. If the applet is static in the html page then it works.

REGRESSION. Last worked in version 6u31

STEPS TO FOLLOW TO REPRODUCE THE PROBLEM :
1. add an applet to a page using javascript like:

    document.getElementById('appletcontainer').innerHTML= '<applet width="100" height="100" archive="testapplet.jar" code="TestLoadApplet.class"></applet>';

2. Load the page and the applet will work the first time.

3. Reload the page a few times and the applet will stop loading.

You can see it happening on this test page:
http://www.screencast-o-matic.com/testapplet_injected

But same applet loads fine when its statically in the html:
http://www.screencast-o-matic.com/testapplet



EXPECTED VERSUS ACTUAL BEHAVIOR :
EXPECTED -
Refreshing the page should load the applet
ACTUAL -
Often refreshing the page won't load the applet.

REPRODUCIBILITY :
This bug can be reproduced often.

---------- BEGIN SOURCE ----------
Applet's code doesn't really matter but for the example given it just paints itself green:

public class TestLoadApplet extends Applet {
    public void paint(Graphics g) {
        g.setColor(Color.GREEN);
        g.fillRect(0,0,getWidth(),getHeight());
    }
}
---------- END SOURCE ----------

CUSTOMER SUBMITTED WORKAROUND :
If the applet is statically in the page then it works.