LW2.2pro, win98se, JRE1.4...
Though not as volatile, I'm having the same trouble...

The installation script doesn't handle having JRE1.4 installed and aborts the installation if you quit the JRE1.3 install it tries to initiate.

JRE1.3 never worked well on my system, so reinstalling it is not an option.

Please make some noise when the problem is solved, thanks.