According to original bug report: If an applet is encoded into the data parameter of an object tag with an undefined "name" attribute, and is then passed to Internet Explorer, then when the application is unencoded and passed in turn to the JVM it causes a null pointer exception to occur in jpiexp32.dll.
There is no proof that this affects anything other than jpiexp32.dll, which is Windows-only. We also no longer ship java-1.5.0-sun so we have no products where this might be an issue, if it was proven to exist.