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John, I am having the same java error on the laptop but haven't so far on the desktop. Like you, this occured on the aol game site. Hope they come out with a fix - don't want to have to think about reloading IE6 on laptop.
Thought I would edited this instead of another post. I encountered problems with java error this morning on my desktop so I went in and uninstalled on the add/remove programs then went to java.com and downloaded and installed java. It worked so have done the same to laptop and tested it - so far so good. Hope this helps you.
I also think IE7 works better on the new computer as it has the speed to handle it compared to my out of date desktop.
Safe travels.
Lorraine
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