JDK1.1 -win32: overlapping window image is drawn on window underneath

This applet performs incorrectly using JDK1.1 for Win32 (fine using SolarisSparc jdk1.1):

/usr/sqe/bugs/javacupbugs/snapshots/1261545/applet.html

The source is available in the 1261545 directory and it's sub directories.

This applet has around six windows with different buttons in each. Drag a window on top of another window with the mouse. Then click on that same window and move it again. You'll find the window that was on the bottom now displays it's image and the image from the window that was on top.

The JDK1.1 build date used was july23.