This magnify applet was written by S. Lalani and K. Jamsa. I will not explain how it works, but it is similar to the other two examples of the magnify applet. The difference is that in this version of the applet, they use an off screen image to erase the old boxes. Also the initial flickering is gone, because they do not show the image before the whole image is loaded.
You can review the code differences at: magnify.java.
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