Sikuli Guide extension graphical problem --- Java 7 not supported --- needs JRE 6

Hello,

I can't get the Sikuli Guide extension to work properly. I have been following the instructions in the Sikuli Guide documentation (http://sikuli.org/docx/extensions/sikuli-guide/index.html) and I tried this test script below:

from guide import *
text("1344258229392.png", "This is an icon")
circle("1344258744333.png")
flag("1344258988728.png", "This is a flag")
callout("1344259871164.png", "päsadfj lds fjdklsaj fdsa lfjdslf dklfjdsa ff")
show(7)

When I run it, the screen goes totally white and then I see the above graphics elements drawn on screen. I have tried these commands individually as well (with the same results). If I run it again, I get weird gliched graphics of the Sikuli application window on top of the white screen (+ the the drawn graphics). Normal sikuli commands work fine.

Any ideas on how to solve this? I already updated my graphics drivers.

Here is my set up:
Sikuli X-1.0rc3 (r905)
Java7 update 5 (build 1.7.0_05-b05)
Windows7 (64bit)
Dell Presicion M4500 (laptop)

Thanks!