I'm posting this for the record- I've seen a few posts regarding this,
but
none were actually helpful, and no viable solution\fix\workaround
actually
came to light:

After trawling the Net, Novell and Newsgroups ad nauseum, I finally
hit upon
the idea of trying Novell's iFolder demo website. Unsurprisingly, this

worked flawlessly.

The next step was to find out how it differed from the website
provided in
the iFolder install- there are quite a few differences, but mostly
cosmetic.
What I did realise, is that the link to take you to the demo is not on
a
frames page. On this basis I tried
https://<myservername>/ifolder/applet/java.htm. It worked. First time.
No
hitting ctrl-F5, nothing. So I edited the ifolder_nav.html file, found
the
'Login' link, changed the 'target=content2' to 'target=_top' and guess
what?
No problems.

Seems M$ have a bug of sorts in their implementation of applets within

frames pages. Either that, or Novell haven't coded it properly. But I
think
the former, for the simple reason that IE itself opens without a hitch
when
it's not in a frames page, and Opera 7 w/java opens it without a hitch
even
when it is. And yes, IE had Sun's java 1.4.1 installed on the machine
in
question.

By the way, if you want to keep the original frames page you could
using
_blank instead of _top to open in a new window. Or if you want it to
look
somewhat similar to the iFolder demo website, you could try adding a
header\footer to the java.htm, as having *just* the applet running is
rather
bland looking. For pointers on this, one option is to view the source
of
Novell's own iFolder demo website, or try htmlhelp.com.

HTH

John