FULL PRODUCT VERSION :
java version "1.7.0_72"
Java(TM) SE Runtime Environment (build 1.7.0_72-b14)
Java HotSpot(TM) 64-Bit Server VM (build 24.72-b04, mixed mode)


ADDITIONAL OS VERSION INFORMATION :
Microsoft Windows [Version 6.3.9600]

EXTRA RELEVANT SYSTEM CONFIGURATION :
It is reported when jar files are downloaded from Server using applets

A DESCRIPTION OF THE PROBLEM :
While accessing our application it opens anapplet window and tries to download the jar file from the server. It was able to download the jar file successfully on 1.7.0_67 but when we upgraded the java to 1.7.0_72-b14 it stopped working and was not able to download the jar file.

When we check the java console with trace level enabled we found that our proxy.pac file content was dumped on the console with "java.net.SocketException: Unknown proxy type : HTTP" error message.

REGRESSION. Last worked in version 7u67

ADDITIONAL REGRESSION INFORMATION:
java version "1.7.0_67"
Java(TM) SE Runtime Environment (build 1.7.0_67-b01)
Java HotSpot(TM) 64-Bit Server VM (build 24.65-b04, mixed mode)


STEPS TO FOLLOW TO REPRODUCE THE PROBLEM :
1) Access a web application which tries to invoke an applet to download the jar file from server
2) This jar file is downloaded via common proxy.pac file
3) Applet window will hang and will not move further and jar file is not downloaded
4) Check the java console in trace level for the error information

EXPECTED VERSUS ACTUAL BEHAVIOR :
EXPECTED -
1) Access a web application which tries to invoke an applet to download the jar file from server
2) This jar file is downloaded via common proxy.pac file
3) Applet window will open the successfully and the jar file downloaded successfully

ACTUAL -
Applet window was hangged and error was logged in java console


ERROR MESSAGES/STACK TRACES THAT OCCUR :
Please find the java console log content in below
Note: the IP address and the server name has been masked or changed for reporting.


Java-Plug-in 10.72.2.14
JRE-Version verwenden 1.7.0_72-b14 Java HotSpot(TM) Client VM
Benutzer-Home-Verzeichnis = C:\Users\hamdanq
----------------------------------------------------
c: Konsolenfenster löschen
f: Objekte in Finalisierungs-Queue finalisieren
g: Garbage Collect
h: Diese Hilfemeldung anzeigen
l: Class Loader-Liste ausgeben
m: Speicherauslastung drucken
o: Logging auslösen
q: Konsole ausblenden
r: Policy-Konfiguration neu laden
s: System- und Deployment-Eigenschaften ausgeben
t: Threadliste ausgeben
v: Threadstack ausgeben
x: Class Loader-Cache leeren
0-5: Traceebene auf <n> setzen
----------------------------------------------------
cache: Initialize resource manager: com.sun.deploy.cache.ResourceProviderImpl@b5615d
basic: Fortschritts-Listener hinzugefügt: sun.plugin.util.ProgressMonitorAdapter@15d0ff7
security: Expected Main URL: http://&lt;server_name&gt;:8080/classes/DialerClient.jar
basic: Plugin2ClassLoader.addURL parent called for http://&lt;server_name&gt;:8080/classes/DialerClient.jar
basic: Plugin2ClassLoader.addURL parent called for http://&lt;server_name&gt;:8080/classes/o2.jar
basic: Plugin2ClassLoader.addURL parent called for http://&lt;server_name&gt;:8080/classes/lib/classes12.jar
network: Cacheeintrag nicht gefunden [URL: http://&lt;server_name&gt;:8080/classes/DialerClient.jar, Version: null]
network: Verbindung von http://&lt;server_name&gt;:8080/classes/DialerClient.jar mit Proxy=HTTP @ 15.119.18.5:8080" } else if (isInNet(host, "15.97.192.0", "255.255.254.0") || (isInNet(host, "15.118.79.8", "255.255.255.255")) || (isInNet(host, "15.97.10.192", "255.255.255.192"))) { return "DIRECT" } else { return "PROXY 15.120.18.5:8080 wird hergestellt
network: Verbindung http://&lt;server_name&gt;:8080/classes/DialerClient.jar, 15.119.18.5:8080" } else if (isInNet(host, "15.97.192.0", "255.255.254.0") || (isInNet(host, "15.118.79.8", "255.255.255.255")) || (isInNet(host, "15.97.10.192", "255.255.255.192"))) { return "DIRECT" } else { return "PROXY 15.120.18.5:8080 wird hergestellt
network: Verbindung von http://&lt;server_name&gt;:8080/ mit Proxy=HTTP @ 15.119.18.5:8080" } else if (isInNet(host, "15.97.192.0", "255.255.254.0") || (isInNet(host, "15.118.79.8", "255.255.255.255")) || (isInNet(host, "15.97.10.192", "255.255.255.192"))) { return "DIRECT" } else { return "PROXY 15.120.18.5:8080 wird hergestellt
java.net.SocketException: Unknown proxy type : HTTP
         at java.net.SocksSocketImpl.connect(Unknown Source)
         at java.net.Socket.connect(Unknown Source)
         at sun.net.NetworkClient.doConnect(Unknown Source)
         at sun.net.www.http.HttpClient.openServer(Unknown Source)
         at sun.net.www.http.HttpClient.openServer(Unknown Source)
         at sun.net.www.http.HttpClient.&lt;init&gt;(Unknown Source)
         at sun.net.www.http.HttpClient.New(Unknown Source)
         at sun.net.www.protocol.http.HttpURLConnection.getNewHttpClient(Unknown Source)
         at sun.net.www.protocol.http.HttpURLConnection.plainConnect(Unknown Source)
         at sun.net.www.protocol.http.HttpURLConnection.connect(Unknown Source)
         at sun.plugin.PluginURLJarFileCallBack.connect(Unknown Source)
         at sun.plugin.PluginURLJarFileCallBack.retrieve(Unknown Source)
         at sun.net.www.protocol.jar.URLJarFile.retrieve(Unknown Source)
         at sun.net.www.protocol.jar.URLJarFile.getJarFile(Unknown Source)
         at sun.net.www.protocol.jar.JarFileFactory.get(Unknown Source)
         at sun.net.www.protocol.jar.JarURLConnection.connect(Unknown Source)
         at sun.plugin.net.protocol.jar.CachedJarURLConnection.connect(Unknown Source)
         at sun.plugin.net.protocol.jar.CachedJarURLConnection.getJarFileInternal(Unknown Source)
         at sun.plugin.net.protocol.jar.CachedJarURLConnection.getJarFile(Unknown Source)
         at com.sun.deploy.security.DeployURLClassPath$JarLoader.getJarFile(Unknown Source)
         at com.sun.deploy.security.DeployURLClassPath$JarLoader.access$1000(Unknown Source)
         at com.sun.deploy.security.DeployURLClassPath$JarLoader$1.run(Unknown Source)
         at java.security.AccessController.doPrivileged(Native Method)
         at com.sun.deploy.security.DeployURLClassPath$JarLoader.ensureOpen(Unknown Source)
         at com.sun.deploy.security.DeployURLClassPath$JarLoader.<init>(Unknown Source)
         at com.sun.deploy.security.DeployURLClassPath$3.run(Unknown Source)
         at java.security.AccessController.doPrivileged(Native Method)
         at com.sun.deploy.security.DeployURLClassPath.getLoader(Unknown Source)
         at com.sun.deploy.security.DeployURLClassPath.getLoader(Unknown Source)
         at com.sun.deploy.security.DeployURLClassPath.getResource(Unknown Source)
         at sun.plugin2.applet.Plugin2ClassLoader$2.run(Unknown Source)
         at java.security.AccessController.doPrivileged(Native Method)
         at sun.plugin2.applet.Plugin2ClassLoader.findClassHelper(Unknown Source)
         at sun.plugin2.applet.Applet2ClassLoader.findClass(Unknown Source)
         at sun.plugin2.applet.Plugin2ClassLoader.loadClass0(Unknown Source)
         at sun.plugin2.applet.Plugin2ClassLoader.loadClass(Unknown Source)
         at sun.plugin2.applet.Plugin2ClassLoader.loadClass0(Unknown Source)
         at sun.plugin2.applet.Plugin2ClassLoader.loadClass(Unknown Source)
         at sun.plugin2.applet.Plugin2ClassLoader.loadClass(Unknown Source)
         at java.lang.ClassLoader.loadClass(Unknown Source)
         at sun.plugin2.applet.Plugin2ClassLoader.loadCode(Unknown Source)
         at sun.plugin2.applet.Plugin2Manager.initAppletAdapter(Unknown Source)
         at sun.plugin2.applet.Plugin2Manager$AppletExecutionRunnable.run(Unknown Source)
         at java.lang.Thread.run(Unknown Source)


REPRODUCIBILITY :
This bug can be reproduced always.

CUSTOMER SUBMITTED WORKAROUND :
Move back the java version to 1.7.0_67