When an applet is showing an AWT TextField and the user starts typing something, the mouse cursor isn't updated and the default cursor is used.
1. Install the Java plugin on Mac OS X
2. Go to http://java.sun.com/products/plugin/1.4/demos/jfc/SwingSet2/SwingSet2.html
3. Click on any text field and start typing
4. Notice that the mouse cursor isn't updated
Compare to Apple's JDK 6, where the mouse cursors work as expected.