Does Conditional Formatting does not work in HTML report editor - BO 4.1

Hi

I have just upgraded to BO 4.1 from BOXI 3.1

I see conditional formatting option is grayed out for me in BO 4.1

I dont have java installed and running launchad on HTML (Preference ->WEBI-> Modify Report -> HTML )

Is there any relation between Applet option and Conditional formatting or is there anything wrong with Access which i need to correcr explicitly as compared to BO 3.1 ?