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Perhaps reading through the advice in the following thread for a similar error should help:
Newbie: Need to install Java for Oracle SQL developer
The latest Java 6 update is now jdk1.6.0_43 rather than _31. And if you haven't already done so, you may also wish to download and install the latest production version of SQL Developer (3.2.20.09.87) in an empty directory:
Choosing the Windows 32-bit - zip file includes the JDK1.6.0_35 download helps avoid the extra Java setup task.
Hope this helps,