java version "1.7.0_10-ea"
Java(TM) SE Runtime Environment (build 1.7.0_10-ea-b08)

The issue is not reproduced on 1.6.0_22

Steps to reproduce:
- Run the code below (Frame with TextField) on Linux:
----------------------------------------------------------
import java.awt.Frame;
import java.awt.TextField;

public class TextFieldTest {
    public static void main(String[] args) {
        Frame frame = new Frame("Test");
        frame.setSize(300,200);
        frame.add(new TextField());
        frame.setVisible(true);
    }
}
----------------------------------------------------------

- Switch keyboard to USA Alternative International
- Type ` + e
Only 'e' is shown without the grave dead key ( 'è' )