First, you need to download the new Java for Lion. Type Lion in POGO search to find the link or just go to Apple's site. After installing it, do the following:
Go to Applications > Utilities > Java Preferences
1) Click the "Enable applet plug-in and Web Start applications" box
2) Click the "Advanced" tab and click the "Hide Console" box (Turns on the Java console without display it)
Pogo will all work again