How can I make Terminal run Java 7 downloaded from the Oracle Website?

I've downloaded Java 7 from the Oracle website, and I want the Terminal application to run that Java 7 download. I try to run Java programs that require Java 7, but it runs with the Apple Internal Java 6 release. How can I make it so my MacBook Pro runs the download of Java that I downloaded? I know this sounds stupid, but am I routing my machine to run the internal Java 6 version? I have seen many videos in which people with the same software version as me run Java like this with no problem. Could you please let me know why this is happening and how I can fix it? I really want to be able to use the Java 7, particularly because I'm always getting this "Unsupported Major Minor Version 51.0" from many applications that are Terminal based.

Thanks!