I'm on 10.6.4, and experienced the same problem with PASW (SPSS) 18.0. I successfully restored Java Update 2 using Pacifist, and now SPSS's graphing features work again.
Apple is apparently no longer hosting Update 2, but I was able to find it online. The filename is JavaForMacOSX10.6Update2.dmg. I loaded it into Pacifist. Unfortunately, Pacifist kept crashing if I tried to just let it install everything itself. So, I looked at every file it updated, and went through and removed the already-installed copies, then installed the Update 2 versions one by one in Pacifist. It took a good 15 minutes. After I was done, I rebooted, tried a scatterplot, and it worked.
Doing this involves messing around in your System and Library folders, and you can seriously mess up your install if you remove the wrong thing, so try this at your own risk. However, it did work for me. Good luck!
Message was edited by: jwhite88