I took my first test a year ago with the old test format and just missed passing. I had read a couple books, but didn't have much experience with actual coding of Java, so I was a little unprepared for the test. But I didn't give up!
Throughout the next year, I was able to do several projects coding in Java, and studied when I got the chance. Whenever I read over a topic that I didn't fully understand, I created some sample code and played around with its output to make sure I understood the basic Java principles.
What made the difference the second time around was:
Khalid Mughal's book: Programmer's Guide to Java Cert.
This is definitely the best cert book out there.
The JQPlus practice exam,
http://enthuware.com/jqplus/ The $20 cost is a bargain for such a quality study aid. Take all of their pre-set tests, and read through all of the explanations, even the one's you get right! If you can consistently pass these tests you will FLY through the real exam!
Tips for the test:
#1 - Try to relax! If you are passing the JQPlus tests then you know your Java and will do fine. Get some needed rest the night before you take it, and just try to think about how happy you will be after passing the test.
#2 - As everyone says, know threads, I/O constructors, and overriding/overloading. These topics make up almost 75% of the test.
#3 - I also had three or four questions on parameter passing. So make sure you know the difference between passing primitives and objects. There were several tricky questions regarding the passing of Strings, StringBuffers and arrays, so write some sample code to make sure you understand how these can and cannot be modified.
#4 - Also take part in Java Ranch discussions in the Certification forum. Just talking through your questions and answering other people's questions, will help you grasp the concepts and store them in your long term memory.
Hope this helps, and good luck with your studying!