Just in case you happen to be working on Google App Engine development on a Mac and are having problems running the development server after getting the latest Java update from Apple I have a solution for you: roll back to update 3 (1.6.0_22) and be happy again.
- Install Pacifist and then run it.
- Click the ‘Open Package’ button and navigate to the disk image you just downloaded from Apple containing the Java updater.
- Right-click on the pkg file located in the disk image that Pacifist just mounted and select “Install to default location”.
- For any prompts that ask for you to Replace or Update make sure you select “Update”.
This worked for me. I’m happily running the dev server again.
Solution originally found here.