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The simplest fix would be to use the latest JDK 1.6.0 series update (jdk1.6.0_30). SQL Developer is not certified with 1.7.0. The OTN download page should make that clear.
Configure SQL Developer to use a specific JDK by including a SetJavaHome line in <install_home>\sqldeveloper\bin\sqldeveloper.conf
And if you really want to use JDK 1.7 anyway, see this post:
SQL Developer Team
I uninstalled Java 1.6 for security reasons.
The link to the thread on using Java 1.7 is no longer valid.
Not sure what happened to that link, but I as far as I know it should make absolutely no difference for security purposes if one chooses the latest Java 7 update or the the latest Java 6 update. I would guess both code lines are patched to same level.
Perhaps you are referring to recent press about vulnerabilities in Java 7 updates _06 and _07? Those issues only apply to browser plug-ins, totally unrelated to SQL Developer, and those can be disabled easily without removing Java.
The official recommendation is to use the latest Java 6 update (jdk1.6.0-35) for SQL Developer. We recommend avoiding Java 7 due to bugs, but bugs unrelated to security.