OK the possible solution is a bit heavy. Installing or updating ovr the net can & has caused issues. Some files don't install properly. It means downloading the Java standalone installer http://www.apple.com/downloads/macos...update142.html
OR/& downlding & installing the OS 10.3.7 Combo update which is also a standalone installer. I don't have a link for it at the moment, it could take a while to find it.

In the meantime you could try this: LW Jum build & choose the htm link. His is like a beta of a beta but tends to run more smoothly. It could prove to be an interesting test to see if it overcomes your issues.