Reproducible on Solaris and Linux.
JDK:
java version "1.4.0-rc"
Java(TM) 2 Runtime Environment, Standard Edition (build 1.4.0-rc-b85)
Java HotSpot(TM) Client VM (build 1.4.0-rc-b85, mixed mode)
(happens at least with b65 as well)

Run Font2DTest, select user text "Java2D\u05e6Java2D" .
Set font transform to 'rotate' - the part of the string
starting with \u05e6 character is rendered as if
the y coordinate of the beginning of the line is reset
at this character.

Happens with all fonts, using drawString, TextLayout.draw,
TestLayout.getOutline + draw.

Graphics2D transform doesn't matter.

###@###.### 2001-11-08