This error means you're trying to load a Java "class" file that was compiled with a newer version of Java than you have installed.
For example, your .class file could have been compiled for JDK 7, and you're trying to run it with JDK 6.
So the solution is to either:
For developers, this can happen if another developer checks in a .class file, and they've got a newer version of java than you have!