This question was dogging me for a few days until I found almost a full answer but I want to share the issue first:
ISSUE
I have a Windows 7 pro 64 bit laptop that supports both IPv4 and IPv6 (important later) I downloaded and installed the latest Java 7 u 51 jre / browser plugin and would always get a grey applet box before it would eventually redirect and say "failed to verify" if java was installed.
I am also a java developer and had a few JDKs installed as well as jres. Thinking it was my environment I did a complete wipe of jave from my system (I ran JavaRa and made sure everything was removed http://singularlabs.com/software/javara/)
I installed the 32 bit version of the JRE for the chrome plugin and made sure all the setting and security info was correct (per the many posts about this topic).
After clearing all cache (browser and java), punching holes through my firewall (even disabling it to see if that would resolve it) as well as running things as administrator, verifying java was installed and running in all my browsers (it failed in IE, Chrome and FF)
All of this was per many posts that said how to solve the issue of Java 7 not running in any browser.
After enabling full trace and debugging with the Java console via the Java Control Panel I finally get some decent clues from the stack traces displayed in the console. It was failing to get resources from java or any site that had an applet or jnlp web start file.