Having the exact same issue, on three computers. All of them were running Vanilla Minecraft 1.7.2 with no problems at all. As soon as the 1.7.4 update came out, I got this error on all three. Have disabled firewall and anti-virus (Security Essentials), and have removed the libraries folder, but have not had any luck.
Nothing has changed on these systems - no permission changes were made, no changes to antivirus, the JVM version hadn't even changed when the issue began (although it is updated now and sadly, that has not helped.) The update itself seems to be causing the issue.
Hey guys, try moving your launcher executable to a different folder. This fixed it on two of my machines (haven't tested the third.) I have no idea why I can't launch it from the desktop anymore, even though I've been doing so for years. But, in the short run, this worked for me. Hope this helps!