Well, I have the fix for you (provided you don't intend to use any applets which need IPv6 support):
1. Go to the Java control panel
2. Go to the 'Java' tab and click 'View' under 'Java Applet Runtime Settings'
3. In the 'Java Runtime Parameters' box, paste the following line in:
4. Hit 'OK' and hit 'Apply' then 'OK' again, and reboot.
Your java applets should now be working again! Yay!