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I have encountered a similar situation as well. Deploying new systems with OEM (factory) installed 64-bit Windows 7 SP1 Professional operating system that also has a pre-installed Java on the system. Have a GPO based install for Java 7 Update 7 which seems to install just fine (over an older version of Java 7) but subsequent attempts to use Java in an IE9 browser results in no Java. If you go to the Oracle (Java) page to show what version of Java is on the system it tells you to download the latest. A similar problem happens with the install of Java 6 Update 35 as well.