You won't see it move to the pane, but if you press the up or down arrows, it should scroll around the news pane. This might be related to how Java 7 changes focus on Tab Key press http://dogfeathers.com/mark/java7issue.html
This seems tied to the version of Java you're using.
I tested both Java 6 and Java 7 (both 32-bit) and found that Java 6 allows you to tab through the login/password boxes, Java 7 switches to the web news pane when you hit tab.
You won't see it move to the pane, but if you press the up or down arrows, it should scroll around the news pane. This might be related to how Java 7 changes focus on Tab Key press http://dogfeathers.com/mark/java7issue.html