Apple has released a "Java Update for Mac OS X 10.3.9" via Software Update utility :
This update will correct issues affecting some Java users following the
installation of Mac OS X v10.3.9 Software Update.
For detailed information on this Update, please visit this website:
http://www.info.apple.com/kbnum/n301382
Earlier this week, Apple acknowledged [1] the issue by posting a support document [2] showing how to fix it manually.