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thanks for your reply, but i don't think its problem with jai.
I think its problem with mac 10.6 or 10.7 permission of not allowing writing file on it using signed applet. As jai api works fine when i keep the file in buffer and process it.
But one of major requirement is to save resized file on MAC. the code use to work fine on Mac x 10.5. So any idea what may have changed on mac 10.6 or 10.7?