Here's a simple example of the problem in action:
> (set str (java.lang.String:new '"some string"))
exception error: badarg
in (: lfe_io_pretty print1 "some string")
>
This seems to be a problem of displaying java.lang.String objects. Using a let (an operation which doesn't attempt to display the result) gets around the problem highlighted in the example above:
> (let ((str (java.lang.String:new '"some string")))
(java:call str 'getClass '() '()))
java.lang.String
>