I got the exact same problem when upgrading to hardy. After trying to fix things through editing permissions in different versions of java.policy (I wasted a couple of hours doing that :-), I found the simple solution to be the best. I uninstalled jre with synaptic and reinstalled through firefox plugin-manager. It took less then a minute and fixed everything right up :-)
/Micke -- Icedtea plugin breaks (goes grey) when loading applet https://bugs.launchpad.net/bugs/202883 You received this bug notification because you are a member of Java Packaging, which is subscribed to icedtea-java7 in ubuntu. _______________________________________________ Mailing list: https://launchpad.net/~ubuntu-java Post to : ubuntu-java@lists.launchpad.net Unsubscribe : https://launchpad.net/people/+me/+editemails More help : https://help.launchpad.net/ListHelp