This Java issue doesn't effect everyone. Don't ask me why
I had no problems with 1.6.0_01 & update 2's working fine as well. All I can suggest is that you try Java versions as they're released...if the latest Java update doesn't work then you can roll back to the older Java that works for you.
Archive: Java[tm] Technology Products Download

I'm not sure whether the developers are looking at this issue.