Spiral knights worked on my PC for 2 months and then 1 day it stopped to work.
I updated java and reinstalled yet the problem persists.
launcher.log
2011/11/07 21:38:09:923 INFO e.a: ------------------ VM Info ------------------
2011/11/07 21:38:09:932 INFO e.a: -- OS Name: Windows 7
2011/11/07 21:38:09:932 INFO e.a: -- OS Arch: x86
2011/11/07 21:38:09:932 INFO e.a: -- OS Vers: 6.1
2011/11/07 21:38:09:932 INFO e.a: -- Java Vers: 1.7.0_01
2011/11/07 21:38:09:932 INFO e.a: -- Java Home: c:\program files\steam\steamapps\common\spiral knights\java_vm
2011/11/07 21:38:09:933 INFO e.a: -- User Name: Seamon
2011/11/07 21:38:09:933 INFO e.a: -- User Home: C:\Users\Seamon
2011/11/07 21:38:09:933 INFO e.a: -- Cur dir: c:\program files\steam\steamapps\common\spiral knights
2011/11/07 21:38:09:933 INFO e.a: ---------------------------------------------
2011/11/07 21:38:09:961 INFO e.a: Failed to find proxy settings in Windows registry [error=java.lang.NoSuchFieldError: m_key]
2011/11/07 21:38:09:964 INFO e.a: ---------------- Proxy Info -----------------
2011/11/07 21:38:09:965 INFO e.a: -- Proxy Host: null
2011/11/07 21:38:09:965 INFO e.a: -- Proxy Port: null
2011/11/07 21:38:09:965 INFO e.a: ---------------------------------------------
2011/11/07 21:38:09:971 INFO e.a: Skipping [quals=linux, osname=windows 7, osarch=x86, key=resource, value=[linux] native/liblwjgl64.so]
2011/11/07 21:38:09:971 INFO e.a: Skipping [quals=linux, osname=windows 7, osarch=x86, key=resource, value=[linux] native/liblwjgl.so]
2011/11/07 21:38:09:971 INFO e.a: Skipping [quals=linux, osname=windows 7, osarch=x86, key=resource, value=[linux] native/libjinput-linux.so]
2011/11/07 21:38:09:971 INFO e.a: Skipping [quals=linux, osname=windows 7, osarch=x86, key=resource, value=[linux] native/libjinput-linux64.so]
2011/11/07 21:38:09:972 INFO e.a: Skipping [quals=linux, osname=windows 7, osarch=x86, key=resource, value=[linux] native/libopenal64.so]
2011/11/07 21:38:09:972 INFO e.a: Skipping [quals=linux, osname=windows 7, osarch=x86, key=resource, value=[linux] native/libopenal.so]
2011/11/07 21:38:09:972 INFO e.a: Skipping [quals=linux, osname=windows 7, osarch=x86, key=resource, value=[linux] native/libkeybd.so]
2011/11/07 21:38:09:973 INFO e.a: Skipping [quals=linux, osname=windows 7, osarch=x86, key=resource, value=[linux] native/libfroth.so]
2011/11/07 21:38:09:973 INFO e.a: Skipping [quals=mac os x, osname=windows 7, osarch=x86, key=resource, value=[mac os x] native/liblwjgl.jnilib]
2011/11/07 21:38:09:973 INFO e.a: Skipping [quals=mac os x, osname=windows 7, osarch=x86, key=resource, value=[mac os x] native/libjinput-osx.jnilib]
2011/11/07 21:38:09:973 INFO e.a: Skipping [quals=mac os x, osname=windows 7, osarch=x86, key=resource, value=[mac os x] native/openal.dylib]
2011/11/07 21:38:09:973 INFO e.a: Skipping [quals=mac os x, osname=windows 7, osarch=x86, key=resource, value=[mac os x] native/libfroth.jnilib]
2011/11/07 21:38:09:974 INFO e.a: Skipping [quals=linux, osname=windows 7, osarch=x86, key=java_location, value=[linux] /spiral/client/java_linux.jar]
2011/11/07 21:38:09:974 INFO e.a: Skipping [quals=mac os x-x86_64, osname=windows 7, osarch=x86, key=jvmarg, value=[mac os x-x86_64] -d32]
2011/11/07 21:38:09:986 INFO e.a: Able to lock for updates: true
2011/11/07 21:38:10:020 INFO e.a: Verifying application: http://download.threerings.net/spiral/20111101143217/
2011/11/07 21:38:10:020 INFO e.a: Version: 20111101143217
2011/11/07 21:38:10:020 INFO e.a: Class: com.threerings.projectx.client.ProjectXApp
2011/11/07 21:38:10:025 INFO e.a: Dropping status 'm.validating'.
2011/11/07 21:38:10:032 INFO e.a: Unable to read version file: .\version.txt (The system cannot find the file specified)
2011/11/07 21:38:12:249 INFO e.a: Dropping status 'm.validating'.
2011/11/07 21:38:12:260 INFO e.a: Resources verified.
2011/11/07 21:38:12:261 INFO e.a: Dropping status 'm.launching'.
2011/11/07 21:38:12:263 INFO e.a: Didn't find any custom environment variables, not setting any.
2011/11/07 21:38:12:263 INFO e.a: Running .\java_vm\bin\javaw.exe
-classpath
c:\program files\steam\steamapps\common\spiral knights\.\code\config.jar;c:\program files\steam\steamapps\common\spiral knights\.\code\projectx-config.jar;c:\program files\steam\steamapps\common\spiral knights\.\code\projectx-pcode.jar;c:\program files\steam\steamapps\common\spiral knights\.\code\lwjgl.jar;c:\program files\steam\steamapps\common\spiral knights\.\code\lwjgl_util.jar;c:\program files\steam\steamapps\common\spiral knights\.\code\jinput.jar;c:\program files\steam\steamapps\common\spiral knights\.\code\jshortcut.jar;c:\program files\steam\steamapps\common\spiral knights\.\code\commons-beanutils.jar;c:\program files\steam\steamapps\common\spiral knights\.\code\commons-digester.jar;c:\program files\steam\steamapps\common\spiral knights\.\code\commons-logging.jar
-Dcom.threerings.getdown=true
-Xmx256M
-XX:+AggressiveOpts
-XX:SoftRefLRUPolicyMSPerMB=10
-Djava.library.path=c:\program files\steam\steamapps\common\spiral knights\./native
-Dorg.lwjgl.util.NoChecks=true
-Dsun.java2d.d3d=false
-Dappdir=c:\program files\steam\steamapps\common\spiral knights\.
-Dresource_dir=c:\program files\steam\steamapps\common\spiral knights\./rsrc
com.threerings.projectx.client.ProjectXApp

projectx.log
2011/11/07 21:38:12:678 INFO I$a.b: Logging to 'c:\program files\steam\steamapps\common\spiral knights\.\projectx.log'.
2011/11/07 21:38:18:993 INFO I$a.b: Steam initialized.
2011/11/07 21:38:22:682 INFO I$a.b: Connecting [host=game.spiralknights.com/184.73.171.119, port=47624]
WARNING: Found unknown Windows version: Windows 7
Attempting to use default windows plug-in.
Loading: net.java.games.input.DirectAndRawInputEnvironmentPlugin