This week's book giveaway is in the OO, Patterns, UML and Refactoring forum. We're giving away four copies of Refactoring for Software Design Smells: Managing Technical Debt and have Girish Suryanarayana, Ganesh Samarthyam & Tushar Sharma on-line! See this thread for details.
1) Learn and use proper Java naming conventions. Where in any text book or tutorial have you ever seen a variable name start with a capital letter? Don't make up your own rules. Its hard to read your code becuase a capital letter implies you are referencing a class, not a variable.
2) Why are you setting the layout on the "enemyPanel". You don't add any components to it so there is no reason to play with the layout.
3) Why are you creating a custom component to draw an image. A JLabel already does this for you when you use the setIcon() method.
4) Why are you using setVisible( true ). All Swing components are visible by default (except top level containers, like JFrame, JDialog, etc.).
5) You add the component to the frame. The frame is the one that needs a null layout so you can manually position the component
6) You can manually change the location of a component by using enemyLabel.setLocation(...);