This is likely related to this bug, which is being fixed in 7u12
Can you try to set the Locale to UTF8 ?
7u12 will soon be available on java.net, when it is it will be here:
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Additional comment from bug:
When java applet launched by the plugin the LC_CTYPE variable should be set to 'UTF-8' otherwise system libraries we are linked against will return gibberish instead of the real letters on all the operations where we have non-ASCII characters. Hence JFileChooser gets the file listing where instead of the correct file name (like Tür.pfx) we get wrong name (T?r.pfx). Then JFileChooser double-checks if file is accessible (it is not - there no such file as T?r.pfx) and because there is no such file it does not display it in the file view.
Edited by: RogerL (Oracle) on Oct 31, 2012 2:39 PM
As you suggested (thanks for the URL by the way!), I have now installed 7u12b03 (reported as 1.7.0_12-ea from within my App) and I am afraid the issue while File.exists=false is still present for files containing Umlaut (e.g. "ß" = ß or "ö" = ö). To recall, I have an app compiled as JAR with Eclipse, and launching with double-click on OSX.
I just tried to run it from the Terminal (java -jar <appname>.jar) and then it works - so I run the "java -version" command and it shows:
MacPro1a:TF_App sysadmin$ java -version
java version "1.6.0_37"
Maybe something is not updated right by the installer (sorry, I'm just a hobby-developer, this is really at the boundary of my knowledge). I would expect that after installing java7(using the supplied installer) it makes it the default java ?