Weblogic10.3 with JDK7: Use of the extension function is not allowed when the secure processing feature is set to true

Question

We are using Weblogic10.3. After upgrading to JDK7 (JDK1.7.0_u67), we are encountering the problem like below when parsing response from a third party Web site. We have set jaxp.proeprties file under /jre/lib folder with the following properties:

javax.xml.accessExternalDTD=all
javax.xml.accessExternalSchema=all
javax.xml.accessExternalStylesheet=all

But, still get the following errors. I am very frustrated with the problem. Please help! Thank you.

javax.xml.transform.TransformerException: java.lang.RuntimeException: Use of the extension function 'http://exslt.org/dates-and-times:formatDate' is not allowed when the secure processing feature is set to true.
    at com.sun.org.apache.xalan.internal.xsltc.trax.TransformerImpl.transform(TransformerImpl.java:755)
    at com.sun.org.apache.xalan.internal.xsltc.trax.TransformerImpl.transform(TransformerImpl.java:359)
    at org.apache.taglibs.standard.tag.common.xml.TransformSupport.doEndTag(TransformSupport.java:195)
    at jsp_servlet.__rkdfundamental._jsp__tag15(__rkdfundamental.java:750)
    at jsp_servlet.__rkdfundamental._jspService(__rkdfundamental.java:156)
    at weblogic.servlet.jsp.JspBase.service(JspBase.java:34)
    at weblogic.servlet.internal.StubSecurityHelper$ServletServiceAction.run(StubSecurityHelper.java:227)
    at weblogic.servlet.internal.StubSecurityHelper.invokeServlet(StubSecurityHelper.java:125)
    at weblogic.servlet.internal.ServletStubImpl.execute(ServletStubImpl.java:301)
    at weblogic.servlet.internal.ServletStubImpl.onAddToMapException(ServletStubImpl.java:416)
    at weblogic.servlet.internal.ServletStubImpl.execute(ServletStubImpl.java:327)
    at weblogic.servlet.internal.ServletStubImpl.execute(ServletStubImpl.java:184)
    at weblogic.servlet.internal.RequestDispatcherImpl.invokeServlet(RequestDispatcherImpl.java:529)
    at weblogic.servlet.internal.RequestDispatcherImpl.forward(RequestDispatcherImpl.java:253)
    at org.springframework.web.servlet.view.InternalResourceView.renderMergedOutputModel(InternalResourceView.java:236)
    at org.springframework.web.servlet.view.AbstractView.render(AbstractView.java:257)
    at org.springframework.web.servlet.DispatcherServlet.render(DispatcherServlet.java:1183)
    at org.springframework.web.servlet.DispatcherServlet.doDispatch(DispatcherServlet.java:902)
    at org.springframework.web.servlet.DispatcherServlet.doService(DispatcherServlet.java:807)
    at org.springframework.web.servlet.FrameworkServlet.processRequest(FrameworkServlet.java:571)
    at org.springframework.web.servlet.FrameworkServlet.doGet(FrameworkServlet.java:501)
    at javax.servlet.http.HttpServlet.service(HttpServlet.java:707)
    at javax.servlet.http.HttpServlet.service(HttpServlet.java:820)
    at weblogic.servlet.internal.StubSecurityHelper$ServletServiceAction.run(StubSecurityHelper.java:227)
    at weblogic.servlet.internal.StubSecurityHelper.invokeServlet(StubSecurityHelper.java:125)
    at weblogic.servlet.internal.ServletStubImpl.execute(ServletStubImpl.java:301)
    at weblogic.servlet.internal.ServletStubImpl.execute(ServletStubImpl.java:184)
    at weblogic.servlet.internal.WebAppServletContext$ServletInvocationAction.wrapRun(WebAppServletContext.java:3750)
    at weblogic.servlet.internal.WebAppServletContext$ServletInvocationAction.run(WebAppServletContext.java:3714)
    at weblogic.security.acl.internal.AuthenticatedSubject.doAs(AuthenticatedSubject.java:321)
    at weblogic.security.service.SecurityManager.runAs(SecurityManager.java:120)