I tried installing the latest lwjgl, it was working fine without IndustrialCraft with other mods such as buildcraft. The mod works without the latest lwjgl and the same minecraft.jar.
The problem is that the game crashes at the Mojang splash screen if both are installed.
I'm using java 7 on 64-bit Windows 7.
I don't know if there are any error logs on this, the ModLoader.txt doesn't show that anything is wrong.