I ran into similar issues and it was because Java had run an
update to version 1.5. The latest version supported is version
1.4.2. So you simply need to open your terminal application and
update the Alias to point to the 1.4.2 version.
I found a few links referencing this but the simplest one
that worked for me is Listed below as well as linked to the source.
One more note - I had to re-install after making the change.
But using CF 7.0.1 after making the change, the instillation ran
smooth as silk.
Hope it helps
First change directory, and run the ls command to view your
versions by typing the following command in your terminal
application:
cd /System/Library/Frameworks/JavaVM.framework/Versions/
ls -l
You should see up to version 1.5
Your VM version is the one linked to by the CurrentJDK
symbolic link. If 1.5.0 is the current VM, you can change to 1.4.2.
sudo rm CurrentJDK
sudo ln -s 1.4.2 CurrentJDK
This isn't destructive and doesn't remove the 1.5 install,
just points the VM to use the previous Java 1.4.2 installation.
http://www.macintouch.com/readerreports/applications/topic4434.html