After recent upgrade (testing) Mozilla 1.7.8 will not load pages bcs of PSM

After a recent upgrade of a Debian workstation (built as sarge, now 
tracking testing), Mozilla 1.7.8 started refusing to load a lot of Java 
related pages with a messages about PSM (eg. Amazon login, etc.)

------------------
This document cannot be displayed unless you install the Personal 
Security Manager (PSM).
Download and install PSM and try again...
-------------------

mozilla-psm is installed

I am using Sun Java 1.4.2_08 JDK / plugin

It was all working just fine before the upgrade. Both Java and Mozilla 
are as before the upgrade.

I have uninstalled mozilla-psm and reinstalled.
I have uninstalled all mozilla related stuff and reinstalled one thing 
at a time.

rparr@n3:~$ dpkg -l |grep mozil
ii  mozilla        1.7.8-1  The Mozilla Internet application suite
ii  mozilla-acrore 7.0-0.9  Adobe Acrobat(R) Reader plugin for ozilla /
ii  mozilla-browse 1.7.8-1  The Mozilla Internet application suite - cor
ii  mozilla-firefo 1.0.4-2  lightweight web browser based on Mozilla
ii  mozilla-firefo 1.0.4-2  tool for inspecting the DOM of pages in Mozi
ii  mozilla-firefo 1.0.4-2  Support for Gnome in Mozilla Firefox
ii  mozilla-mailne 1.7.8-1  The Mozilla Internet application suite - mai
ii  mozilla-psm    1.7.8-1  The Mozilla Internet application suite - Per


I can access the same sites just fine using Konqueror (and from RedHat 
system using Mozilla 1.7.6)

Is this a known problem?

Is there a way to fix this?

Any help would be greatly appreciated.

Thanks

R.Parr, RHCE
Temporal Arts