That instruction means that you cannot use any component from the AWT package for which there is a replacement in the Swing package. So you cannot use a Button since there is a JButton component.
Does this mean that I can not use awt features like Font, Color? Infact all the layouts are from awt package.
Yes, they are all from the java.awt package, but none of them are java.awt.Components.
Personally I suspect that the prohibition on using ant AWT Component was suggested at the time that the SCJP exam required candidates to know what was a java.awt.Component and what wasnt (boy, wasn't that fun :roll: ). Since candidates who passed SCJP 1.4 or SCJP 1.5 no longer need to know that class heirachy, the restriction on using ant AWT Component(s) only seems to confuse people. In fact, I am adding this to the FAQ now ...