On the off chance that there's something (else) wrong here, make sure you have a complete and current backup of your disk(s). You probably won't need it, but it's still good practice to have a complete and current backup. Particularly in the unlikely event something does go wrong.
Download the Java kit directly from Apple, and install it yourself.
If that fails, boot the recovery partition (HT4718) and use Disk Utility to check the volume and then to repair the permissions.
If that fails, then download the OS X client 10.7.3 Combo kit (the Combo kit, and not the delta kit) and install that, then try installing the Java kit. The Combo kit installation is non-destructive.
Strictly speaking, the volume and protection repairs and the combo kit update probably aren't required here, but these steps have resolved a few errors. And again, have a backup.
These and other download kits are available from the Apple Download Servers.