Java Runtime Environment versions should be updated, because of security leaks, but it is also important to uninstall previous versions, because an applet may choose in what kind of version it chooses to be run, so that particular version then should no longer be available to it. How to do this, you can read here:
Ok, I know there are very few Mac users on this forum but here goes…
In Mac OS X Tiger (10.4.x) you can not uninstall older java versions but you can set the version you want all applets to use heres how:
in the utilities folder open the java folder and then the java 5.0 folder. Open the java preferences app and make sure java 5.0 is before java 1.4.2 (or if you have older versions make sure it is before them) in the runtime list