Update (5-Aug-2014) - Oracle released Java 1.7 update 67 to address the issue regarding Java 1.7 update 65. If you update to Java 1.7 update 67 there is no need to follow the solution listed below. If you have to stay on Java 1.7 update 65 this article is still relevant.
On 15-July-2014 Oracle released Java 1.7 update 65. After installing this update some customers may find that EditLive does not run because the JRE itself never starts to load.
The JRE update process has a defect that causes the JRE (in some situations) to not function properly after the update is complete. Oracle is aware of the issue and will address this is future releases of the Java 7 JRE.
Resolution / Workaround
For people who have updated to u65 the fastest way to "fix" this issue is to delete a single file that the JRE places in the user's Home directory. The file is named deployment.properties and on Windows computers is located in...
Users should quit their browser(s) and delete this file. After doing this the JRE should start working again