I had this problem and I updated Java thinking that was the problem, then I discovered a YouTube video called Fix Java Application Blocked by Security Settings Error and following that guide fixed my problem. Basiclly don't change the settings from HIGH to Normal, there's a reason why this is happening as Java awhile back had a major vulnerability allowing people to take advantage and gain access to people's machines, while fixing that issue they also made a lot more changes to ensure that never happens again, I imagine it damaged their reputation some what too. Also if possible see if Yog5 Yahoo can be run from HTTPS rather than HTTP.
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