FULL PRODUCT VERSION :
Picked up _JAVA_OPTIONS: -Xmx512M
java version "1.8.0_45"
Java(TM) SE Runtime Environment (build 1.8.0_45-b14)
Java HotSpot(TM) 64-Bit Server VM (build 25.45-b02, mixed mode)

ADDITIONAL OS VERSION INFORMATION :
Microsoft Windows [Version 6.1.7601]

EXTRA RELEVANT SYSTEM CONFIGURATION :
Custom Registry information pertaining to IE, more specifically the following keys cause the issue when set prior to user logon.

"HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Internet Settings\Connections","DefaultConnectionSettings","4600","REG_BINARY"
"HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Internet Settings\Connections","SavedLegacySettings","4600","REG_BINARY"
"HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Internet Settings","AutoDetect","0","REG_DWORD"


A DESCRIPTION OF THE PROBLEM :
During an MSI install or uninstall we get the following error

java.lang.ArrayIndexOutOfBoundsException: 8
at com.sun.deploy.net.proxy.WIExplorerProxyConfig.isAutoDetectEnabled(Unknown Source)
at com.sun.deploy.net.proxy.WIExplorerProxyConfig.getBrowserProxyInfo(Unknown Source)
at com.sun.deploy.net.proxy.WDefaultBrowserProxyConfig.getBrowserProxyInfo(Unknown Source)
at com.sun.deploy.net.proxy.DynamicProxyManager.reset(Unknown Source)
at com.sun.deploy.net.proxy.DeployProxySelector.reset(Unknown Source)
at com.sun.javaws.Main.initializeExecutionEnvironment(Unknown Source)
at com.sun.javaws.Main.continueInSecureThread(Unknown Source)
at com.sun.javaws.Main.access$000(Unknown Source)
at com.sun.javaws.Main$1.run(Unknown Source)
at java.lang.Thread.run(Unknown Source)

However, This only happens when this value is set and it is installed. If you manually check then uncheck the correlating values within Internet Options under LAN Settings Detect Automatic Settings... it works.


STEPS TO FOLLOW TO REPRODUCE THE PROBLEM :
Clear out registry keys by deleting them and replacing with what is below.

"HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Internet Settings\Connections","DefaultConnectionSettings","4600","REG_BINARY"
"HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Internet Settings\Connections","SavedLegacySettings","4600","REG_BINARY"
"HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Internet Settings","AutoDetect","0","REG_DWORD"

Attempt to install Java 8u45 and you will receive the error. It appears to install despite error however no java pages will load within IE. They will load in FF however...

EXPECTED VERSUS ACTUAL BEHAVIOR :
EXPECTED -
Java to load within IE and function during the java test page
ACTUAL -
java test page never "loads" and just displays a grey box

ERROR MESSAGES/STACK TRACES THAT OCCUR :

java.lang.ArrayIndexOutOfBoundsException: 8
at com.sun.deploy.net.proxy.WIExplorerProxyConfig.isAutoDetectEnabled(Unknown Source)
at com.sun.deploy.net.proxy.WIExplorerProxyConfig.getBrowserProxyInfo(Unknown Source)
at com.sun.deploy.net.proxy.WDefaultBrowserProxyConfig.getBrowserProxyInfo(Unknown Source)
at com.sun.deploy.net.proxy.DynamicProxyManager.reset(Unknown Source)
at com.sun.deploy.net.proxy.DeployProxySelector.reset(Unknown Source)
at com.sun.javaws.Main.initializeExecutionEnvironment(Unknown Source)
at com.sun.javaws.Main.continueInSecureThread(Unknown Source)
at com.sun.javaws.Main.access$000(Unknown Source)
at com.sun.javaws.Main$1.run(Unknown Source)
at java.lang.Thread.run(Unknown Source)

REPRODUCIBILITY :
This bug can be reproduced always.

CUSTOMER SUBMITTED WORKAROUND :
You need to manually select and unselect the Detect Automatic Settings within the Internet Options -> Connections ->LAN settings options.