Relative Dimensions doeenot get repainted when browser is resized

Applet running in Java Plug-in on Solaris IA / Netscape 4.6
doesnot get repainted properly when the browser is resized .The size of the
applet remains same with the gray box area increased.
The graybox is seen in the increased size rather than
the applet covering the complete area.

To reproduce the problem:

1.Install Java Plug-in Merlin Build 54
2.Run the following applet
http://sqesvr.eng.sun.com/deployment1/ws/doc/proc/JPI_Relative.html

  Run test case 1 .
3. wait for the applet to be is loaded.(if you resize while
  applet is loading it kills the browser or hangs)

4. resize the browser main window.
5. The applet gets reloaded and the applet is seen only on the
   previous area where it was displyed earlier before resize with
   gray area on the resize area.