I haven't yet installed java 7 (nor do I have mountain lion installed yet) on my mac so I cannot help you with that , but you might get some information on which java versions are installed/active.
From the commandline execute the following
Code:
sudo /usr/libexec/java_home
You could also check your system preferences and the installed java runtimes (can be found in Application -> Utilities) and enable them.
Finally it could be that the installer requires JDK 1.6 on a Mac (never tested it) but there is nothing preventing you from installing both JDK 1.6 and JDK 1.7..