Sorry for missing the Java version in your first post.
The error you're getting implies that Arduino is somehow running under an older version of Java, even though the one in your path is 1.5. You can edit the application configuration file that comes with Arduino and set the minimum version to 1.5. Right-click (Control-click) on the Arduino.app file and select "Show package contents". Open the Contents folder and edit the Info.plist file. There's a JVMVersion key; change the String to 1.5+ instead of 1.4+. Save the file and try to run Arduino again.