You might have an incompatible version of the RXTX library installed somewhere. See the notes under "all platforms" on this page on the Processing web site: Serial / Libraries / Processing.org
The link says to look for libSerial.jnilib on OSX, which I am lacking. I do however have a librxtxSerial.jnlib in my Java extensions folder. I also have a regular comm.jar from 9/04 and rxtxcomm.jar from 7/06 in the same folder.
I blew all 3 away, and lo and behold, it worked! I think they may have been left over from an ooooold installation of JMRI.
For those who are looking for a solution in the future, the files are located in /Library/Java/Extensions/, and the directory looked like this before I deleted them and got it fixed:
Just delete all 3 and the problem goes away.
Oh, and make sure you're running release 8 of Java for Max OSX 10.4. It seems to speed things up and add stability all over.
Thanks Muasball! Finally I've got my Arduino working. I just deleted those Java exact files as you said, and the port is no longer grayed out. I was able to load the Blinking LED program and now the fun begins. For a while there I thought that I was never going to get it working, but I knew better and just hung on.
Last year I had trouble getting a NCE USB card to work with a Power Cab to run JMRI's Decoder Pro and the fix had something to do with Java RXTX libraries. Maybe that created the problem I was having with Arduino.