Write a LayoutManager.

PofN

My approach would be to set the height of the JPanel to be the point
size of the font since the point size is the recommended vertical line
spacing on most fonts.

Jeff Coffield

Very easy if you can use 1.5 or later.

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

public class test3 extends JPanel {
    String str = "Now is the time for all good men to come to the aid";
    int height;

    public test3(Font font) {
        setFont(font);
        FontMetrics fm = getFontMetrics(font);
        height = fm.getHeight();
        int width = fm.stringWidth(str);
        setPreferredSize(new Dimension(width,height));
    }

    public void paintComponent(Graphics g) {
        g.drawString(str,0,height);
    }

    public static void main(String[] args) {
        Runnable r = new Runnable() {
            public void run() {
                test3 t3 = new test3(new Font("Arial",Font.BOLD,24));
                JFrame f = new JFrame();
                f.setDefaultCloseOperation(JFrame.EXIT_ON_CLOSE);
                f.add(t3,BorderLayout.CENTER);
                f.pack();
                f.setVisible(true);
            }
        };
        EventQueue.invokeLater(r);
    }
}