I recently had a problem where it wouldn't accept some certificates we had to use to connect to a third party.
java.security.InvalidKeyException: Illegal key size
The Problem
We saw exceptions like this:
in the log files and after a bit of search we found that it all boils down to the standard jvm not supporting certificates above 128bit.
The Solution
The solution was to download the "Java Cryptography Extension (JCE) Unlimited Strength" Policy files and follow the installation instruction in that package.
NOTE: This works for JRockit as well even though it isn't specifically specified in the documentaion.
Oracle WSM
The standard Oracle WSM policies uses Basic 128bit encryption but they can be configured to use other encryption algorithms. Under advanced settings for the impacted policies there is an Algorithm Suite setting that allows you to change to the an algorithm that fits the certificates.
It is probably a good idea to make a copy of the policy before starting to configure it. This can be done using the Create Like button.