Ok I let it install MS Java and restarted the machine. Ran the MSJVM Remove tool from Microsoft and rebooted. Now Sun Java Applet no longer works in IE/Maxthon/Avant. I guess the MSJVM Removal tool disabled Java support completely. This has happened to me before but I wasn't sure at which point it started happening.
Installed MSJVM build 2710. It asked me to reboot but I didn't reboot. Loaded IE and tested Java availabilty from http://java.com/en/download/help/testvm.xml and now it says Congratulations you have latest Sun Java version 1.5.0_01 installed. Something is dodgy with the MSJVM Removal tool.
You will then get a prompt to uninstall, choose yes, and choose to reboot.
Then go and delete the java folder in \windows. After that go to \windows\inf\ and delete java.inf and java.pnf Next step is to search for javavm.dll and delete it. "
I then had to uninstall the Sun Java, rebooted, and then reinstalled the SunJava.
At this point both Avant & IE Browsers were reported as :
Don't worry if you could not find java.inf and javavm.dll. I couldn't find them but I accomplised my goal.