If I was conducting a new graduate interview, I wouldn't really expect you to be writing Java code on a whiteboard or anything, instead, focus on hardening your core Java skills. The Sierra-Bates SCJP 6 book is great for not only studying for certification, but making sure you know all the core concepts of the language.
If you're interviewing for a senior developer role, I would check out some O'Reilly books on Spring, Hibernate, JSP, basically anything outside the core language. In this case you need to be able to show you know the concepts but can also implement them effectively.
No matter what though, sit down in front of your favorite IDE while reading these books. Try all the examples, it really helps to code them by hand.
If you know the core language, it's tough to be tricked, and if someone won't hire you because you didn't know when to use a PriorityQueue's offer instead of add, that's messed up.