Java 7 Error Message Upon IE Start

Hello. New to the forums but I wanted to present this to others in case they have a fix.
We pushed out the latest Java update to our client base and it seems that nearly ALL Windows 7 machines receive a ssvagent.exe error every time they launch Internet Explorer. We lock down all the workstations to run as non-admin so we receive the following error:
*"C:\PROGRA~1\Java\jre7\bin\ssvagent.exe*
*This program is blocked by group policy."*
We've been telling clients that by resetting the browser to defaults, which disables the Java add-on in IE, the error goes away. However, there may be clients who need this applet ENabled. We also found that running IE as the admin prompts us to run the ssvagent.exe program and after which, the non-admin user has no additional pop-ups in IE/the applet is showing as Enabled in the Add-In Manager.
We've never had a Java problem in the past when it came to admin vs. non-admin. Again, it seems to ONLY be on Win7 machines running as non-admin.
Any suggestions other than disabling this add-in or logging in to each machine with administrator privileges?
Thanks!

Thanks Robbie,
I took your advice and upgraded, maybe, to IE 5.1.7, or at the least I reinstalled Internet Explorer.
I just want to say what a great blessing is the USB memory stick to people like me. I don't have, and I can't get, DSL broadband. If I could I would like a shot. Not having that I trundle to the local branch library, plug-in my memory stick, download whatever I want, and trundle back home with it. What would have taken a half day to down load on dial up, takes about 5 minutes at the library.
While I was there I also downloaded mozilla 1.3.1, the latest version of stuffit expander, talked to some nice people, and brought home a good book to read in the bargain.
It was a good day. Kurt Vonngut was right, "People are made to f..t around."
Lawrence
Cube G4   Mac OS 9.2.x  

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