Till morning everything working fine in my applet. I took Java update and everything stopped. I\'m dealing with digital certificate using applet. Here is my stack trace. I f
I cannot comment yet so am putting this as an answer instead.
I believe creating the .java.policy file in your applet will be too late - the plugin will have already started up and read the policy files before running any of your code.
You could sign your applet and use a jnlp file to assign permissions in the security element