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It means you can use java micro edition, which is a version of java trimmed down to run on portable devices that don't have the full capabilities of a desktop computer. Many cellphones use it, as well as PDAs and the like.
I don't know exactly what's missing with respect with the full version. The windowing system (called SWING) is removed for instance.
So in short, with a proper runtime (which is not included with the iLiad, and don't ask me about how to get one), you could run some java programs but not all of them, certainly not windowed apps.
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