[John Howard]
So does that mean that a jre does not have to be on the local pc?
No: there *must* be a JRE on the local PC: how could the java/jython run
at all without an execution environment?
The JRE on the local PC is the very thing that is preventing you from
reading files from local drives.
If you want to, you can permit any and all applet to load files from
your local drive. In Internet Explorer, select
"Tools->Options"->Security->Custom Level->Microsoft VM->Java
Permissions->Custom->Java Custom Settings.
In that control panel you can disable all of the protections that your
browser puts in place to protect you from hostile applets on the
Internet at large. Feel free to dismantle those security barriers, at
your own risk: by doing so you're opening the contents of your hard-disk
to the world. I Hope you're not storing any private or sensitive
information on there.
The local pc does not have to set policies, etc.
No, that's precisely where you set policies. Where else could they be set?
Alternatively, as others have pointed out multiple times, you can
digitally sign your applets so that they can be recognized and thus
given more permissions than unknown applets.