FULL PRODUCT VERSION :
java version " 1.7.0_21 "
Java(TM) SE Runtime Environment (build 1.7.0_21-b11)
Java HotSpot(TM) Client VM (build 23.21-b01, mixed mode, sharing)

ADDITIONAL OS VERSION INFORMATION :
Microsoft Windows [Version 6.1.7601]

EXTRA RELEVANT SYSTEM CONFIGURATION :
64-bit windows and 32-bit Java

A DESCRIPTION OF THE PROBLEM :
32-bit Java Update to 7.21 fails to replace javaws in SysWOW64 directory:

After update! (full installation of newer Java will work fine) of Java from version 1.7.0_17 to 1.7.0_21 javaws.exe is missing from C:\Windows\SysWOW64 directory.

This invalidates shortcuts for web start since web start is pointing to that Java executable by default.
When trying to access web start short cuts the following error is displayed:
The item javaws.exe that this shortcut refers to has been changed or moved, so this shortcut will no longer work properly.
Do you want to delete this shortcut?

STEPS TO FOLLOW TO REPRODUCE THE PROBLEM :
install 32-bit Java 1.7.0_17
download any web start application that creates a shortcut
Update!!! to 1.7.0_21 (full installation will work o.k.)
try access the shortcut

EXPECTED VERSUS ACTUAL BEHAVIOR :
EXPECTED -
web start application runs
ACTUAL -
Javaws.exe cannot be located

ERROR MESSAGES/STACK TRACES THAT OCCUR :
The item javaws.exe that this shortcut refers to has been changed or moved, so this shortcut will no longer work properly.

REPRODUCIBILITY :
This bug can be reproduced always.

CUSTOMER SUBMITTED WORKAROUND :
Full installation of Java, which is not acceptable for large companies that rely on the Java updater functionality to work