The JPanel "p" is never added to the GUI, so it -and everything it contains- won't be drawn.
I have added code tags to your post, which keep code much more readable. Next time you post code, please use them as well - they're accessible through the "CODE" button beneath the text entry field when you post.
This seems more of a Swing question than an applet question, so I'm moving this to our GUI forum. Please continue the discussion there. [ January 09, 2006: Message edited by: Ulf Dittmer ]