Completed a bit of investigation on this.
I think the issue is related to version 1.5 of the BareBonesBrowserLaunch java code in Red5 Plugin.
It seems to be broken on OSX with Java 1.6. Still works on Windows. . .
I think the latest version, 2.0, of BareBonesBrowserLaunch addresses this issue.
The latest version can be found here: http://www.centerkey.com/java/browser/
I am working on getting the Red5 Plugin built with this version of code but need to complete a bit of reading beforehand. If someone is set up to build Red5 Plugin already it may be better than waiting on me to do it.
Will update when I know more.