I just fought this issue on a 2 different versions of OSX. My laptop runs 10.6.8 and our prepress department computers run 10.7.5
On my laptop I fixed the problem via the version of (Apple) Java that is offered via software update.
To fix the problem on the 10.7.5 computers, with help from Kodak Response center, I had to download a version from the Oracle website -
Java Archive Downloads - Java SE 7
Before I installed Java, I had to uninstall the "bad" version 7 of Java I had installed as a prompt when having Java problems. This URL explains how to do that:
How do I uninstall Java 7 for my Mac?
This is a review of my experience:
1. Needed to create a Oracle account before I could down load it
2. When I loaded it I was shown a warning box that this was not the latest version and did I want to download the latest version - been there, done that.
3. My first upload attempt in Insite also presented a warning box about security.
4. Upload window loads sequentially with what seems like, at least in computer time, a long lag between Notes area showing (first) and then Upload area showing.
5. Upload worked as expected.
6. Smart Review also worked properly.
Hope this helps.
-Bill-