To update computers in an Active Directory domain using Group Policy to the latest version of Java, download the offline version of Java Runtime. Start the installation, but do not click on next. There will be a folder called “jre1.6.0_xx” where xx is the version in the Sun folder in the Application Data folder. You can copy over the contents of the folder to a network share and publish using Group Policy the msi file located there. It needs the cab file to be located in the same folder. If you need to make modifications to the msi file before deployment, download the Orca tool from Microsoft. This will allow you to edit the msi file. Some options worth considering are:
JavaUpdate = 0 to disable Java Updates tab
IEXPLORER = 1 to register it with Internet Explorer
AutoUpdateCheck = 0 to disable the Automatic checking for updates
ModifyRemove = Remove to allow the older version to be uninstalled
You should also look at running this command to stop the Java Quick Starter Service from running at boot up in a startup script.
sc delete JavaQuickStarterService