JMenuBar menuitem position off

I'm trying to use a jmenubar in a japplet. I can get the menu but when
you click on a menu item the dropdown items are in the lower right hand
of the panel instead of below the menu item? Any ideas?

Thanks

package webapplet;

import java.awt.*;
import java.awt.event.*;
import java.applet.*;
import javax.swing.*;

public class Applet1 extends JApplet {
    boolean isStandalone = false;
    JMenuBar jMenuBar1 = new JMenuBar();
    JMenu jMenu1 = new JMenu();
    JMenuItem jMenuItem1 = new JMenuItem();
    JButton jButton1 = new JButton();
    JPanel jPanel1 = new JPanel();
    JLabel jLabel1 = new JLabel();
    BorderLayout borderLayout1 = new BorderLayout();
    BorderLayout borderLayout2 = new BorderLayout();
    public String getParameter(String key, String def) {
        return isStandalone ? System.getProperty(key, def) :
                (getParameter(key) != null ? getParameter(key) : def);
    }

    public Applet1() {
    }

    public void init() {
        try {
            jbInit();
        } catch (Exception e) {
            e.printStackTrace();
        }
    }

    private void jbInit() throws Exception {
        this.setJMenuBar(jMenuBar1);
        this.setSize(new Dimension(355, 203));
        this.getContentPane().setLayout(borderLayout1);
        jMenu1.setText("File");
        jMenuItem1.setText("Exit");
        jButton1.setText("jButton1");
        jPanel1.setPreferredSize(new Dimension(300, 100));
        jPanel1.setLayout(borderLayout2);
        jLabel1.setHorizontalAlignment(SwingConstants.CENTER);
        jLabel1.setText("Hello");
        jMenuBar1.add(jMenu1);
        jMenu1.add(jMenuItem1);
        jPanel1.add(jLabel1, java.awt.BorderLayout.NORTH);
        jPanel1.add(jButton1, java.awt.BorderLayout.SOUTH);
        this.getContentPane().add(jPanel1,
java.awt.BorderLayout.CENTER);
    }

    public void start() {
    }

    public void stop() {
    }

    public void destroy() {
    }

    public String getAppletInfo() {
        return "Applet Information";
    }

    public String[][] getParameterInfo() {
        return null;
    }

    static {
        try {

//UIManager.setLookAndFeel(UIManager.getSystemLookAndFeelClassName());

//UIManager.setLookAndFeel(UIManager.getCrossPlatformLookAndFeelClassName());
        } catch (Exception e) {
        }
    }
}