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1) Make sure you have correct version of JRE installed. Need 32 for 32 bit browser and 64 bit otherwise.
Check list of installed plugins in IE to see if java plugin is listed.
2) Make sure java plugin is enabled for IE in the Control Panel.
If UAC is on then you need to run Java Control Panel as administrator for settings to take effect.
3) Create small bat file to launch IE:
Close IE and launch using this file. Try to open any applet, you should see window with trace log. Does it mention any errors?
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