The problem is reproduced on Windows, IE, with JDK 5,6,7.
Having an applet that is displayed in IE browser so that its bounds are outside
of the visible client area of the browser.
At a certain moment the applet is requesting focus on the EmbeddedFrame and then
displaying a modal dialog. (The applet doesn't contain any component inside.)
The modal dialog has a text field that should receive focus upon showing
(by default). However this is not the case, when the dialog is displayed
its text field is not focused.
To reproduce. Run the applet attached in IE. Resize the IE window so that it hides
the applet. Click "Enter PIN" button. A dialog will pop up. Try to type something.
If nothing appears in the text field the bug is reproduced.