No, it generates good old (if I can say so) XHTML 1.0.
It should work OK on IE, even older versions, as long as Java is installed. What version of IE do you use? Do you have any message? Output in the Java console?

Thanks for the reply. I got my Processing apps and the Processing exhibition to run on a virtual machine with Windows 7 and IE 8. The machine where the exhibition page does not work is a terminal server at the university where I work. That box has IE 7 on XP. My apps run fine, but the exhibition page said, “Done, but with errors on page.” The only error I see is Error: expected “)”. There are too many unknown variables, so I'm not concerned. Your answer gives me the confidence to put my processing apps on our  public websites.