Sunmicrosystems Jack with IE8

am suddenly getting a message that Java Applets do not run. I'm using Windows XP (SP 3) and this has not happened in the past; seems to have started when I installed IE8. I went to the Java website and there's a bunch of instructions for going into Control Panel/Java/Advanced and being certain Internet Explorer is checked. I did that and followed any other instructions including re-installing. Nothing seems to work and I cannot use Java on this computer. Any suggestions?\

I have done this:

- Start Internet Explorer.
- Select Tools | Internet Options...
- Activate the Security tab.
- Click Custom Level...
- Make sure that "Scripting of Java applets" is set to Enable.


I've also done this:

Start Internet Explorer.
- Select Tools | Internet Options...
- Activate the Programs tab.
- Click Manage add-ons.
- If necessary click Toolbars and Extensions (probably already selected).
- Make sure that all items under Sun MicroSystems are enabled.

Neither of those worked.

Any suggestions?

Thanks.