If Java won't run under Lion for you, a solution to this 'problem' may be as simple as enabling a Java VM. By default, Java is disabled (and probably not even installed) in 10.7.
Try the following:
Go to: Applications » Utilities and open the Java Preferences.app.
Make sure the checkbox at the top is 'checked' in order to enable Java in Lion. If Java is not already installed, you may be asked to do so first.