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[IrishBouzouki <jjmurphy@xxxxxxxxxxx>]

I can confirm this, the VASSAL open source java project, which includes a version for linux, has looked at this (well, me and one other person).
(a) note the title of this bug is the exact opposite of the bug... it is not "needs additional vertical space" it is "takes up too much vertical space" and it does seem limited to text labels at least in my experience - for instance if you have a number of supposedly same-height buttons some with text and some with graphics the text ones are stretched vertically to fit the extra blank space.
(b) this is apparently unique to the ubuntu openjdk (or jre) 6... the fedora amd64 version of openjdk6 amd64 could not be tweaked to show the same bug... although this may prove to be incorrect as I did not pass along the info which seems to imply it is locale related as well and the tester for fedora is in a different continent from me.
it is discussed here - http://www.vassalengine.org/forums/viewtopic.php?t=1328 and the posts towards the end are more precise.

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openjdk label display in swing ui elements needs additional vertical space  
https://bugs.launchpad.net/bugs/255983
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Status in OpenJDK: Confirmed
Status in “openjdk-6” source package in Ubuntu: Triaged

Bug description:
i am on Ubuntu 8.04.1, effect is the same on i386 and amd64, Package: openjdk-6-jre, Version: 6b11-2ubuntu2

Swing UI elements (lists, labels) have additional vertical space, some applets user interfaces are therefore broken with openjdk. In contrast sun-java6-jre works fine with tvbrowser and other applets. I attached a good and a bad png-image. The java program to render the example is ugly but still useable with openjdk but i think the error is shown clearly in comparison of the bad openjdk.png with the good sun sun-java.png.