Well first of all, is there no updated official Java package for your distribution? Whenever possible, you should be using the official packages for your system which figure out all this for you, rather than trying to shoehorn software in from different sources.
If there is no newer Java package available, then you would first need to remove the old one. You say you are creating a dynamic link from the new Java to the one in /bin, but then you are executing Java as "./java", which means you are using the one in your local directory and not using the dynamic link.
What command are you using to create the link? Do you have sufficient privileges to do so?
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