In Internet Explorer, select Tools and then Internet Options. Then select the Security tab. Select the Custom Level button. Scroll down to the Microsoft VM category. Java Permissions must be enabled at least at the high safety level.
If you do not have a Microsoft VM category, then you need to install the Microsoft Java Virtual Machine.
Link to information on installing the MS Java Virtual Machine:
http://www.microsoft.com /java/vm/dl_vm40.htm
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