The game crashes everytime I try and play: big: Unable to fit: lava_flow - size: 32x32 with default texture pack

I can click play in the minecraft launcher but after the MOJANG logo, there is a black screen and the game crashes. Its done this for several months now and I don't know how to fix it! I have tried updating my graphics card, it won't update and I also don't know why. My JAVA is the most up to date one. THIS IS A NEW CRASH REPORT.

---- Minecraft Crash Report ----
// Daisy, daisy...

Time: 7/13/13 3:44 PM
Description: Registering texture

big: Unable to fit: lava_flow - size: 32x32 - Maybe try a lowerresolution texturepack?
	at bid.c(SourceFile:63)
	at bih.b(SourceFile:87)
	at bih.a(SourceFile:54)
	at bij.a(SourceFile:69)
	at bij.a(SourceFile:58)
	at bij.a(SourceFile:49)
	at ats.O(SourceFile:378)
	at ats.d(SourceFile:599)
	at net.minecraft.client.main.Main.main(SourceFile:101)


A detailed walkthrough of the error, its code path and all known details is as follows:
---------------------------------------------------------------------------------------

-- Head --
Stacktrace:
	at bid.c(SourceFile:63)
	at bih.b(SourceFile:87)
	at bih.a(SourceFile:54)

-- Resource location being registered --
Details:
	Resource location: minecraft:textures/atlas/blocks.png
	Texture object class: bih
Stacktrace:
	at bij.a(SourceFile:69)
	at bij.a(SourceFile:58)
	at bij.a(SourceFile:49)
	at ats.O(SourceFile:378)

-- Initialization --
Details:
Stacktrace:
	at ats.d(SourceFile:599)
	at net.minecraft.client.main.Main.main(SourceFile:101)

-- System Details --
Details:
	Minecraft Version: 1.6.2
	Operating System: Windows 7 (x86) version 6.1
	Java Version: 1.7.0_25, Oracle Corporation
	Java VM Version: Java HotSpot(TM) Client VM (mixed mode), Oracle Corporation
	Memory: 27257704 bytes (25 MB) / 69738496 bytes (66 MB) up to 1037959168 bytes (989 MB)
	JVM Flags: 1 total; -Xmx1G
	AABB Pool Size: 0 (0 bytes; 0 MB) allocated, 0 (0 bytes; 0 MB) used
	Suspicious classes: No suspicious classes found.
	IntCache: cache: 0, tcache: 0, allocated: 0, tallocated: 0
	Launched Version: 1.6.2
	LWJGL: 2.9.0
	OpenGL: ATI Radeon X300/X550/X1050 Series GL version 2.1.8545 Release, ATI Technologies Inc.
	Is Modded: Probably not. Jar signature remains and client brand is untouched.
	Type: Client (map_client.txt)
	Resource Pack: Default
	Current Language: English (US)
	Profiler Position: N/A (disabled)
	Vec3 Pool Size: ~~ERROR~~ NullPointerException: null

DEVELOPMENT CONSOLE

Launcher 1.0.10 (through bootstrap 4) started on windows...
Current time is Jul 13, 2013 10:35:42 AM
System.getProperty('os.name') == 'Windows 7'
System.getProperty('os.version') == '6.1'
System.getProperty('os.arch') == 'x86'
System.getProperty('java.version') == '1.7.0_25'
System.getProperty('java.vendor') == 'Oracle Corporation'
System.getProperty('sun.arch.data.model') == '32'
Couldn't load old lastlogin file
java.io.EOFException
	at java.io.DataInputStream.readUnsignedShort(Unknown Source)
	at java.io.DataInputStream.readUTF(Unknown Source)
	at java.io.DataInputStream.readUTF(Unknown Source)
	at net.minecraft.launcher.authentication.BaseAuthenticationService.getStoredDetails(BaseAuthenticationService.java:221)
	at net.minecraft.launcher.authentication.BaseAuthenticationService.guessPasswordFromSillyOldFormat(BaseAuthenticationService.java:196)
	at net.minecraft.launcher.ui.sidebar.login.NotLoggedInForm.onProfilesRefreshed(NotLoggedInForm.java:126)
	at net.minecraft.launcher.profile.ProfileManager$1.run(ProfileManager.java:89)
	at java.awt.event.InvocationEvent.dispatch(Unknown Source)
	at java.awt.EventQueue.dispatchEventImpl(Unknown Source)
	at java.awt.EventQueue.access$200(Unknown Source)
	at java.awt.EventQueue$3.run(Unknown Source)
	at java.awt.EventQueue$3.run(Unknown Source)
	at java.security.AccessController.doPrivileged(Native Method)
	at java.security.ProtectionDomain$1.doIntersectionPrivilege(Unknown Source)
	at java.awt.EventQueue.dispatchEvent(Unknown Source)
	at java.awt.EventDispatchThread.pumpOneEventForFilters(Unknown Source)
	at java.awt.EventDispatchThread.pumpEventsForFilter(Unknown Source)
	at java.awt.EventDispatchThread.pumpEventsForHierarchy(Unknown Source)
	at java.awt.EventDispatchThread.pumpEvents(Unknown Source)
	at java.awt.EventDispatchThread.pumpEvents(Unknown Source)
	at java.awt.EventDispatchThread.run(Unknown Source)

Loaded 1 profile(s); selected '(Default)'
Trying to log in...
Logging in with access token
Logged in successfully
Delta time to compare resources: 12353 ms 
Download job 'Resources' skipped as there are no files to download
Job 'Resources' finished successfully

What I expected to happen was...:
The Game would play as normal like it usually did.
What actually happened was...:
It just started crashing one day and won't work.

Steps to Reproduce:
1. Put a step by step guide on how to trigger the bug here
2. ...
3. ...