The following code creates an application with a panel and a button.
Moving the mouse over the yellow areas around these components allows
you to resize them. Resizing them shows the application refreshing
very oddly. Resizing the button shows the panel as getting its
background cleared but not at the correct location. Also, it seems to
never get its paint method called.

The problem appears to be in the WComponentPeer.validate code. The
bounds of target are obtained but it appears that target is really
this. Don't know why the paint isn't called

import java.awt.*;
import java.util.*;
import java.io.*;
import java.awt.event.MouseEvent;


class TestFrame extends Frame implements
java.awt.event.WindowListener, java.awt.event.MouseListener,
java.awt.event.MouseMotionListener,
java.awt.event.ContainerListener,
java.awt.event.ComponentListener
{

public static final int moveHandle = -1;
public static final int noHit = 0;
public static final int nwHandle = 1;
public static final int wHandle = 2;
public static final int swHandle = 3;
public static final int neHandle = 4;
public static final int eHandle = 5;
public static final int seHandle = 6;
public static final int nHandle = 7;
public static final int sHandle = 8;


Component mover = null;
int moveType = 0;
Point hitPoint = null;


public void windowOpened(java.awt.event.WindowEvent e) {}
public void windowClosing(java.awt.event.WindowEvent e) {dispose();}
public void windowClosed(java.awt.event.WindowEvent e)
{
System.exit(0);
}
public void windowIconified(java.awt.event.WindowEvent e) {}
public void windowDeiconified(java.awt.event.WindowEvent e) {}
public void windowActivated(java.awt.event.WindowEvent e) {}
public void windowDeactivated(java.awt.event.WindowEvent e) {}

public void mouseClicked(java.awt.event.MouseEvent e) {}
public void mousePressed(java.awt.event.MouseEvent evt)
{
// walk through components and test the handles only if the mouse is
not already down
if ((mover == null) )
{
Component[] cList = ((Container)evt.getSource()).getComponents();
hitPoint = new Point(evt.getX(),evt.getY());
for(int i=0;i<cList.length;++i)
{
moveType = hitHandle(cList[i], hitPoint.x, hitPoint.y);
if (moveType != noHit)
{
mover = cList[i];
hitPoint.translate(-mover.getLocation().x,
-mover.getLocation().y);
return;
}
}
}
}

public void mouseReleased(java.awt.event.MouseEvent evt)
{
if ((mover != null))
{
repaint();
}
mover = null;
hitPoint = null;
moveType = noHit;
}
public void mouseEntered(java.awt.event.MouseEvent e) {}
public void mouseExited(java.awt.event.MouseEvent e)
{
if (mover == null)
setCursor(Cursor.getDefaultCursor());
}

public void mouseDragged(java.awt.event.MouseEvent evt)
{
if (mover != null)
{
int newHeight;
int newWidth;
Rectangle size = mover.getBounds();

int x = evt.getX();
int y = evt.getY();

switch(moveType)
{
case moveHandle: // MOVE
mover.setLocation(x - hitPoint.x, y - hitPoint.y);
break;
case nwHandle: // NW anchor SE corner
newWidth = size.x - (x - hitPoint.x);
newHeight = size.y - (y - hitPoint.y);
mover.setBounds(x - hitPoint.x, y - hitPoint.y,
size.width+newWidth, size.height+newHeight);
break;
case wHandle: // W Anchor E side
newWidth = size.x - (x - hitPoint.x);
mover.setBounds(x - hitPoint.x, size.y,
size.width+newWidth, size.height);
break;
case swHandle: // SW Anchor NE corner
newWidth = size.x - (x - hitPoint.x);
newHeight = y - size.y;
mover.setBounds(x - hitPoint.x, size.y,
size.width+newWidth, newHeight);
break;
case neHandle: // NE Anchor SW corner
newWidth = x - size.x;
newHeight = size.y - (y - hitPoint.y);
mover.setBounds(size.x, y - hitPoint.y,
newWidth, size.height+newHeight);
break;
case eHandle: // E Anchor W side
newWidth = x - size.x;
mover.setBounds(size.x, size.y,
newWidth, size.height);
break;
case seHandle: // SE Anchor NW corner
newWidth = x - size.x;
newHeight = y - size.y;
mover.setBounds(size.x, size.y,
newWidth, newHeight);
break;
case nHandle: // N Anchor S side
newHeight = size.y - (y - hitPoint.y);
mover.setBounds(size.x, y - hitPoint.y,
size.width, size.height + newHeight);
break;
case sHandle: // S Anchor N side
newHeight = y - size.y;
mover.setBounds(size.x, size.y,
size.width, newHeight);
break;
}
Rectangle r = mover.getBounds();
r.add(size);
repaint(r.x, r.y, r.width, r.height);

}
}

public int hitHandle(Component comp, int dx, int dy)
{
Rectangle b = comp.getBounds();
if (b.contains(dx, dy))
return noHit;

int x = b.x-5;// - c.getParent().insets().left;
int y = b.y-5;// - c.getParent().insets().top;
int width = b.width+10;
int height = b.height+10;

// now translate the point to the handle to make computation easier
dx = dx - x;
dy = dy - y;
// Check if the point is outside the rectangle
        if ((dx < 0) || (dy < 0) || (dx > width) || (dy > height))
            return noHit;
// check if the point is too far inside the rectange
if ((dx > 5) && (dx < width-10) && (dy > 5) && (dy < height-10))
return noHit;
if (dx < 10) {
if (dy < 10)
return nwHandle;
if (dy > height - 9)
return swHandle;
if ((dy > (height/2)-3) && (dy < (height/2)+3))
return wHandle;
return moveHandle;
}
if (dx > width - 10) {
if (dy < 10)
return neHandle;
if (dy > height - 9)
return seHandle;
if ((dy > (height/2)-3) && (dy < (height/2)+3))
return eHandle;
return moveHandle;
}
if ((dx > (width/2)-3) && (dx < (width/2)+3))
if (dy <= 5)
return nHandle;
else
return sHandle;
return moveHandle;
}

public Cursor handleCursor(int hitType)
{
int cursorType = Cursor.DEFAULT_CURSOR;
switch(hitType)
{
case moveHandle:
cursorType = Cursor.MOVE_CURSOR;
break;
case nwHandle:
cursorType = Cursor.NW_RESIZE_CURSOR;
break;
case wHandle:
cursorType = Cursor.W_RESIZE_CURSOR;
break;
case swHandle:
cursorType = Cursor.SW_RESIZE_CURSOR;
break;
case neHandle:
cursorType = Cursor.NE_RESIZE_CURSOR;
break;
case eHandle:
cursorType = Cursor.E_RESIZE_CURSOR;
break;
case seHandle:
cursorType = Cursor.SE_RESIZE_CURSOR;
break;
case nHandle:
cursorType = Cursor.N_RESIZE_CURSOR;
break;
case sHandle:
cursorType = Cursor.S_RESIZE_CURSOR;
break;
case noHit:
default:
cursorType = Cursor.DEFAULT_CURSOR;
break;
}

return Cursor.getPredefinedCursor(cursorType);
}


public void mouseMoved(java.awt.event.MouseEvent evt)
{
Cursor c = Cursor.getDefaultCursor();
if (mover == null)
{
// walk through components and test the handles
Component[] cList = ((Container)evt.getSource()).getComponents();
Point point = new Point(evt.getX(),evt.getY());


for(int i=0;i<cList.length;++i)
{
moveType = hitHandle(cList[i], point.x, point.y);
Cursor tmpCursor = handleCursor(moveType);
if (tmpCursor.getType() != Cursor.DEFAULT_CURSOR)
{
setCursor(tmpCursor);
return;
}
}
}
setCursor(c);
}

public void componentAdded(java.awt.event.ContainerEvent e)
{
// this frame wants to know when the component is resized
e.getChild().addComponentListener(this);


}
public void componentRemoved(java.awt.event.ContainerEvent e)
{
repaint();
}

public void componentResized(java.awt.event.ComponentEvent e)
{
e.getComponent().getParent().validate();

}
public void componentMoved(java.awt.event.ComponentEvent e)
{
e.getComponent().validate();
}
public void componentShown(java.awt.event.ComponentEvent e)
{
}
public void componentHidden(java.awt.event.ComponentEvent e)
{
}


public TestFrame(String s)
{
super(s);
setLayout(null);
addMouseListener(this);
addMouseMotionListener(this);
addWindowListener(this);
addContainerListener(this);


}


    public static void main(String[] argv)
{


TestFrame t = new TestFrame("Test Frame");
t.setLayout(null);
t.setSize(500, 500);
t.addNotify();
t.show();

MyPanel p = new MyPanel();
p.setLayout(null);
p.setBounds(30, 30, 200, 200);
p.addMouseListener(t);
p.addMouseMotionListener(t);
t.add(p);

Button b = new Button("Text");
b.setBounds(10, 10, 75, 25);
b.addComponentListener(t);

p.add(b);

}

public void paint(Graphics g)
{
g.setColor(Color.gray);
g.fillRect(0, 0, getSize().width, getSize().height);
Component[] c = getComponents();
g.setColor(Color.yellow);
for(int i=0;i<c.length;++i)
{
Rectangle r = c[i].getBounds();
r.grow(5,5);
g.fillRect(r.x, r.y, r.width, r.height);
}

}


}


class MyPanel extends java.awt.Panel
{
public void paint(Graphics g)
{
g.setColor(Color.blue);
g.fillRect(0, 0, getSize().width, getSize().height);
Component[] c = getComponents();
g.setColor(Color.yellow);
for(int i=0;i<c.length;++i)
{
Rectangle r = c[i].getBounds();
r.grow(5,5);
g.fillRect(r.x, r.y, r.width, r.height);
}

}
}