Yes, people produce apps for Android all the time using 1.6 (JDK 6 as its more commonly known).
When you create your keystore, there is a time parameter --validity:
keytool -genkey -v -keystore mykeystore.keystore -alias aliasname -keyalg RSA _ -validity 999999 _
This is the number of days the keystore is good for. Now 999999 is over 2700 years away. But the default if you left it off is only 90 days. So it’s very possible that your keystore has expired. You can always use the command above to generate a new one. Change the mykeystore and the aliasname to something more appropriate for you. Keep in mind this will put the keystore file in the directory/folder you are in when you run the command. People tend to loose these because they don’t remember were they put them. You might want to use the “cd” command to change to a directory where your store all your keystores before running the keytool command from the terminal.