If '0" is saved in your querytemplate as a default setting for Param.1 then I would assume this is expected behavior in the trace window - it is QueryTemplate + changes (and that param would be excluded). Make it a '1' and you'll likely see it in the trace.
Unrelated to your issue: I'm not sure how the 100% height/width dimensions will work - combinations of browsers and JRE versions have historically given some rendering challenges, especially if the user resizes the screen and the applet needs to adjust using percentages instead of fixed pixels.
Obviously we still haven't solved your problem...
Assuming you aren't having some form of caching issue (simple test would be from another computer or browser), I see that you have protected some of the names but refer to it as an XacuteQuery, so that may also be adding another dimension of complexity for troubleshooting...
With your QT mapped into your DT, testing the applet from the WB and then doing a view source in the browser's html will give you a nice comparison with the above text to make sure it's not just a simple typo. (the page can also be saved as a test html or irpt file and run standalone just as a sanity check - of course this only make sense if the applet renders as expected when testing from the WB).