OK I did some reading and want to update you.
The download of either Java 1.3 or 1.4 will contain the new type of plug-in demanded by IE 5.5 SP2 and above.
I was confusing the way IE and Opera use java. Opera goes straight to the JRE while IE still seems to use the plug in model, although it is the new type plug in.
I included a screen shot of the Java Plug in Control and what I did to make Java work.
Essentially you want to go to the cache tab. Clear out the cache. And then re-enable java so a fresh, undamaged jar file in placed in the java_plugin_AppletStore.