When loading applets in explorer (I am using XP with sp1 and IE
version 6) I get the red x in the small white box instead of the
applet. On the java applet test page I get the "alt=your browser
recognizes...." error on all EXCEPT for the "Blinking text" test. For
some reason that one works.

I have tried just about everything 3 times at least. on the Java
control panel browser section IE is checked. On the internet tools
settings - advanced - the "use Java 2..." is checked. Under the
security tab Java permissions is at medium. Have tried clearing the
cache. Have tried everying on the java website for the red x error.

In the system 32 folder I do have an Msjava.dll file and right
clicking it shows version 5.0.3167.0 11/24/1999

I have run jview from the command line and it comes back with the
"...loader for Java version 5.00.3167......"

could there be some type of interference with this dll file?