I did a quick try and your app works fine with 7u9. Try run one more time with tracing on (see http://docs.oracle.com/javase/7/docs/webnotes/tsg/TSG-Desktop/html/plugin.html#gcexdf) and if problem still persist. If it does not help try clearing the cache using java control panel or javaws -uninstall <url>. If you found some interesting error from the debug tracing, post it here.
I am seeing the same issue since the update. I get the error below if I double -click on a jnlp or try to run from the command line as suggested in another post:
To open this Web Start application, you need to download the Java Runtime Environment
Click "More Info..." to visit the website fro the Java Runtime Environment.
The More Info button takes you to the java download page.
I have installed both the jdk and jre for 7u9. Things worked before the update. If I double-click on a jar file, all works well.
And console, debugging and tracing is on (always) and it never gets to that point. It immediately give me the dialog box noted above.
And cleared the cache via the control panel, no change.
Please let me know if I can provide further information.
I tried looking at the differences between the log files when it runs (command-line javaws only) and when it doesn't (Icon or running from Jviewer cache). There are numerous differences but I can't pinpoint the cause of an error. The working command-line call shows offlineOnly=true, whereas the the failing icon log shows offlineOnly=false. I'm not sure if that's significant. I believe I have the JNLP set to run without an Internet connection.
FWIW, the working call generates two log files. The failed call only one.
I believe this is a separate problem from the other poster. The only dialog I see after the splash screen is "verifying application" then nothing.
After doing some research, I found a plugin for Google Chrome that will put current page you are on into an Internet Explorer wrapper with Java 6 installed in it. Its called Rndr and I have tested it on OSX 10.8 and 10.6.8 and it appears to launch any java plugin or .jnlp webstart app in the browser itself.
Just to avoid confusion, could you please start another thread. The problem you describe although related to 7u9 upgrade is different from this shortcut launching problem.
Please provide more info like the URL you are using, the platform (machine/OS version), what JRE version you have installed before the 7u9 update. If windows, whether manually uninstall-and-reinstall helped.