thx ahmedelshfie.! yes the first method works best, 2nd method assumes your PC is windows xp

copy the line
[code]permission java.util.PropertyPermission "j3d.stereo", "read"; //  added by lookang[/code]

into the exisiting java.policy

i did it on a windows 7 system too by doing this.

copy out java.policy to a space where u can edit and save the new java.policy say d:/

add the line of code at the bottom of the page of java.policy

for windows 7 it looks like this, different from windows xp

[code]
// Standard extensions get all permissions by default

grant codeBase "file:${{java.ext.dirs}}/*" {
permission java.security.AllPermission;
};

// default permissions granted to all domains

grant {
// Allows any thread to stop itself using the java.lang.Thread.stop()
// method that takes no argument.
// Note that this permission is granted by default only to remain
// backwards compatible.
// It is strongly recommended that you either remove this permission
// from this policy file or further restrict it to code sources
// that you specify, because Thread.stop() is potentially unsafe.
// See "http://java.sun.com/notes" for more information.
permission java.lang.RuntimePermission "stopThread";

// allows anyone to listen on un-privileged ports
permission java.net.SocketPermission "localhost:1024-", "listen";

// "standard" properies that can be read by anyone

permission java.util.PropertyPermission "java.version", "read";
permission java.util.PropertyPermission "java.vendor", "read";
permission java.util.PropertyPermission "java.vendor.url", "read";
permission java.util.PropertyPermission "java.class.version", "read";
permission java.util.PropertyPermission "os.name", "read";
permission java.util.PropertyPermission "os.version", "read";
permission java.util.PropertyPermission "os.arch", "read";
permission java.util.PropertyPermission "file.separator", "read";
permission java.util.PropertyPermission "path.separator", "read";
permission java.util.PropertyPermission "line.separator", "read";

permission java.util.PropertyPermission "java.specification.version", "read";
permission java.util.PropertyPermission "java.specification.vendor", "read";
permission java.util.PropertyPermission "java.specification.name", "read";

permission java.util.PropertyPermission "java.vm.specification.version", "read";
permission java.util.PropertyPermission "java.vm.specification.vendor", "read";
permission java.util.PropertyPermission "java.vm.specification.name", "read";
permission java.util.PropertyPermission "java.vm.version", "read";
permission java.util.PropertyPermission "java.vm.vendor", "read";
permission java.util.PropertyPermission "java.vm.name", "read";
permission java.util.PropertyPermission "j3d.stereo", "read"; //  added by lookang
};
[/code]

rename the old java.policy from C:\Program Files (x86)\Java\jre6\lib\security to say java~.policy

copy back the file which has the new added line as C:\Program Files (x86)\Java\jre6\lib\security to say java.policy

it works again!
attached in the java.policy for windows 7 system