hmm. (these are just suggestions i wouldn't know if it would work or not)
i suggest you check if your graphics card drivers are up to date.
try reinstalling minecraft.(via deleting it from your appdata and re launching the game)
you say you have the latest java but if you have a 64 bit system try getting 64bit java aswell(ive only needed 64bit to use .bat files to pump more ram into minecraft beta and beta server)
you could also try upgrading your web browser.(normally they auto update but its worth a try)
I hope one of these suggestions work for you.
But please remember these are only suggestions and i wouldn't know 100% if they work or not.