Java Error when attempting to Import Software from console on workstation

I've got an interesting one here that I have not been able to solve via the KB's availabile from Symantec. We've got a new 7.1 environment. When we go to Import Software form a workstation (link a migrated package to a new Software Resource), Java loads but then we get an error that doesn't allow us to browse the P: dir up on the SMP. We are using the 'Local Directory on Notification Server' option. This works fine when accessing from an RDP session on the actual SMP.

After Java loads we get a message where the applet should load that says Error : Click for details. when you click the error you get the following message below:

(Unfortunuatley although there are a couple of KB's that reference this errror neither of them have solved the issue). One referenced a Proxy setting in IE and the other referenced a missing file but referenced a dir that only exists on the SMP itself.

The Error Generated:

load: class PackageDefinition.class not found.

java.lang.ClassNotFoundException: PackageDefinition.class

                at sun.plugin2.applet.Applet2ClassLoader.findClass(Unknown Source)

                at sun.plugin2.applet.Plugin2ClassLoader.loadClass0(Unknown Source)

                at sun.plugin2.applet.Plugin2ClassLoader.loadClass(Unknown Source)

                at sun.plugin2.applet.Plugin2ClassLoader.loadClass(Unknown Source)

                at java.lang.ClassLoader.loadClass(Unknown Source)

                at sun.plugin2.applet.Plugin2ClassLoader.loadCode(Unknown Source)

                at sun.plugin2.applet.Plugin2Manager.createApplet(Unknown Source)

                at sun.plugin2.applet.Plugin2Manager$AppletExecutionRunnable.run(Unknown Source)

                at java.lang.Thread.run(Unknown Source)

Caused by: java.io.IOException: Authentication failure

                at sun.net.www.protocol.http.HttpURLConnection.getInputStream(Unknown Source)

                at java.net.HttpURLConnection.getResponseCode(Unknown Source)

                at sun.plugin2.applet.Applet2ClassLoader.getBytes(Unknown Source)

                at sun.plugin2.applet.Applet2ClassLoader.access$000(Unknown Source)

                at sun.plugin2.applet.Applet2ClassLoader$1.run(Unknown Source)

                at java.security.AccessController.doPrivileged(Native Method)

                ... 9 more

Exception: java.lang.ClassNotFoundException: PackageDefinition.class

Any thoughts on this? We are ramping up on the road to get 7.1 deployed but only being able to import software from the SMP itself is a pain.

Thanks

DC