Just a note that installing Java 7 in its current state on Windows XP SP3 machines, will affect Yawcam 0.3.6 (built 2011-3-22) settings in the following areas:
1. Text overlays, positions, colors and day/date/time stamp on files will not be saved after closing and restarting Yawcam.
2. Window positions will not be saved for the Control Panel and Console.
There may be other items, but these are the ones I ran into under the setup and features I am using. Uninstalling Java 7 and reinstalling Java 6.0.26 corrected the issue
...and yes, I chased a lot of dead ends for a day first, so I hope this saves others THEIR time.