FULL PRODUCT VERSION :
java version "1.6.0_24"
Java(TM) SE Runtime Environment (build 1.6.0_24-b07)
Java HotSpot(TM) Client VM (build 19.1-b02, mixed mode, sharing)

ADDITIONAL OS VERSION INFORMATION :
Microsoft Windows [Version 6.1.7600]

A DESCRIPTION OF THE PROBLEM :
The cab file located at:
http://java.sun.com/update/1.6.0/jinstall-6-windows-i586.cab

When used in an OBJECT tag as described here:
http://download.oracle.com/javase/6/docs/technotes/guides/javaws/developersguide/launch.html

Does NOT download and install an appropriate version of the Java Plug-In for IE9 on Windows 7 SP1 systems. This cab file should be updated to install the latest Java version, which is currently 6u25.

STEPS TO FOLLOW TO REPRODUCE THE PROBLEM :
On a Windows 7 SP1 system with Internet Explorer 9:

1) Uninstall any previous version of the Java Plug-in / JRE
2) Reboot

3) Visit a web page containing a Java applet OBJECT tag like this one:
<OBJECT codebase="http://java.sun.com/update/1.6.0/jinstall-6-windows-i586.cab#Version=6,0,0,0"
classid="clsid:5852F5ED-8BF4-11D4-A245-0080C6F74284" height=0 width=0>

4) Observe that the resulting Java installation is not actually the latest version. Instead, it is Java 6u18, which has problems on Windows 7 SP1 with IE9.

EXPECTED VERSUS ACTUAL BEHAVIOR :
EXPECTED -
I expect that the latest release of Java 6 will always be installed when using that .CAB file URL.
ACTUAL -
The CAB file downloads and installs Java 6 update 18.

REPRODUCIBILITY :
This bug can be reproduced always.

CUSTOMER SUBMITTED WORKAROUND :
It is possible to use the following URL as the "codebase" attribute of the OBJECT tag to workaround the problem:

http://java.sun.com/update/1.6.0/jinstall-6u25-windows-i586.cab

This is not ideal, since it requires hard-coding a version into the web application, when in reality the developer likely wants "latest."