Yes. Swing uses DirectDraw. But you can disable direct draw usage with the -Dsun.java2d.noddraw option. (That is running program with 'java -Dsun.java2d.noddraw main.Class' )
I had to use this option when I had a S3 Virge DX (graphic card), since it had glitches with ddraw.
Thanks, I didn't know about that option, very useful! :)
Quick investigation led to me to conclude that fixing this bug is not trivial, a proper clipper implementation is required. It'd be nice to fix it sometime, I don't think it's especially hard. Just a matter of hours.