Hi,
I've just played "Scared" (
http://www.brackeen.com/home/scared/index.html). It's a first person shooter a la Quake in a
Java Applet. It's the best Applet I've ever seen.
The author is Dave Brackeen, the author of
Developing Games in Java. Check it out, it really changed my conceptions of how fast an Applet can be.