X-BLACKRAT,
Before you try the older version did you try the beta version? To trap_jaw4's point there is a release since I had my problem. It might work well for you.
Second give this a whirl - go to control panel, open Java, select the browser tab and uncheck IE and Netscape. Reboot & try.
If you want the 1.3.1 version go here -
http://java.sun.com/j2se/1.3/download.html
Good Luck,
Norm