Dear Amogh..
I have the same configuration but still the same error comes up. I was so bugged up with this config that I removed all the latest softwares and installed Internet explorer 6, adobe 7.9 and java virtual machine 5.
Then I figured out that my Microsoft Virtual Machine software and Java Virtual Machine software were clashing and so my internet explorer used to crash soon after 100 percent upload. Then i downloaded the Microsoft Virtual Machine Removal Tool from Microsoft website, removed that software, restarted and tried uploading with adobe 7.8, IE 6 and Java 5.0.
With this config, the same old files were uploaded with out any fuss. Hence I have done most of my work. Will try experimenting on the last version on these softwares once this October rush is over..
Thanks all for the valuable inputs on this topic.