It seems that you are picking up the default java installation (GNU java under /usr/bin/java) in this case. The AWT error indicates that you are loading GNU AWT toolkit (libgcj.so is a GNU java library which comes installed by default. I believe that since you are installing JDK yourself, your LD_LIBRARY_PATH picks up the gnu libraries.
Do you see this issue if you do a sudo apt-get install sun-java5-jdk and install JDK5 and use it.
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