Typing "java -version" into my terminal confirms that I have the latest version of java.
Its directory path is "/System/Library/Java/JavaVirtualMachines/1.6.0.jdk"; however, the EJS console incorrectly has "/Library/Internet Plug-Ins/JavaAppletPlugin.plugin/Contents/Home" listed.
The field containing this path text is not editable within the EJS console, and typing the correct path in the "Launch EJS in this alternate Java VM" field does not solve the problem.
This issue has some very strange effects on EJS. All of the code text looks terrible, the run look and feel is not affected by the run look and feel options, and one of my .ejs programs will not open anymore and crashes my computer when I try.
I recently updated my Macbook Pro to Mountain Lion and I suspect that this may have some correlation to this issue.
I also have a Mountain Lion Mac Book Pro. The EJS Console lists by default the following Java folder: /System/Library/Java/JavaVirtualMachines/1.6.0.jdk/Contents/Home
I have no idea why Java reports its default installation is /Library/Internet Plug-Ins/JavaAppletPlugin.plugin/Contents/Home.
However, try to type /System/Library/Java/JavaVirtualMachines/1.6.0.jdk/Contents/Home in your "Launch EJS in this alternate Java VM" field and see if this fixes the problem.
I assume that you installed Java correctly (see http://osxdaily.com/2012/08/01/install-java-in-os-x-mountain-lion/)
