A number of sites have pointers to this internal memo allegedly from Sun Microsystems and posted on InternalMemos.com.

The gist of the memo is that more resources need to be committed within Sun to make sure that the development efforts necessary are spent on Java and that it is done in a way that allows them to actually use Java for product development.

The complaints about java include space and execution speed as well as reliability and API integrity.

Some interesting thoughts, although not necessarily the "smoking gun" about Java being eschewed inside of Sun as it is made out to be on some sites.