I can't see anything wrong with your code. I've tested in Eclipse and it is working. What happens if you open the html file with a browser? It could also be that, for some odd reason, the String is being draw outside the applet. Try to set the position to 10, 10 instead 100, 200 and see if that helps. Try also setting different colours in the paint method before drawing the String (g.setColor(Color.white), for example).
If that still does not help, I don't know what the problem is. A little on style though: Try to name all classes you create in Java, with the first letter in uppercase (in this case, Applet1). It won't affect your code at all, but it is encouraged to do so in order to keep consistence with the rest of Java classes.