It's not really the classpath that is the problem, it's your regular PATH variable. The new version of java that you installed is either not in your PATH or it is deeper in your PATH than the 1.1 version of java. I would suggest that you do a find from root, and look for both programs called java.
find / -name java -print
If two java programs show up, then run each with a absolute path from root and see which is the version you want. Delete the other and modify you PATH if necessary. If only one java shows up, then reinstall java.
Hope this helps