The "Scripting of Java applets" machine setting should be configured correctly for the Locked-Down Intranet Zone.
enabled/disabled
Computer Configuration\Administrative Templates\Windows Components\Internet Explorer\Internet Control Panel\Security Page\Locked-Down Intranet Zone\Scripting of Java applets
HKEY_LOCAL_MACHINE\Software\Policies\Microsoft\Windows\CurrentVersion\Internet Settings\Lockdown_Zones\1
Microsoft Tool: Security Compliance Manager (SCM)
Microsoft Baseline: Internet Explorer 8
SCM URL: http://go.microsoft.com/fwlink/?LinkId=113940
Microsoft Security Compliance Manager (SCM) Baselines and Settings Packs
Microsoft