Q:

Getting access denied when using AWTEventListener in Applet

I have an applet embedded in browser. In the applet init() method I have the below code:
Toolkit.getDefaultToolkit().addAWTEventListener(new AWTEventListener() {
        public void eventDispatched(AWTEvent event) {
            if(event instanceof MouseEvent){
                MouseEvent evt = (MouseEvent)event;
                if(evt.getID() == MouseEvent.MOUSE_CLICKED){
                    System.out.println("Mouse Clicked");
                }
            }
        }
    }, AWTEvent.MOUSE_EVENT_MASK);

When applet loads I'm getting error:  
access denied ("java.awt.AWTPermission" "listenToAllAWTEvents")

Policy
Now in my policy file (path below) I appended at the bottom:
Permission
grant  {
    permission java.security.AllPermission;
};

Path
C:/Program Files/Java/jdk1.7.0_10/jre/lib/security/java.policy

But I'm still getting same access denied problem.
Anyone has any idea why I'm still getting that error even though I'm granting all permissions in the java.policy file?

A:

Here is a link to trusted code written/deployed by me. It produces the java.home property for the JVM. 
Here it points to:
C:\Program Files (x86)\Java\jre7 

Note that no part of that path contains jdk as I now note in the path above. Ensure the policy file is on the same path as the one identified in the applet.

