Java 6 Update 10 (6u10) and higher include a brand-new implementation of the Java Plug-in, which is enabled by default. This is the primary cause of problems, and you may have problems after any new updates of Java. If there are issues running applets with the new Java Plug-in, the user can switch to the old Java plug-in without any manual manipulation of the Windows registry and moving files.
See the next-generation Java Plug-in article on Java.com for more details.