I think Sun's standard is less than clear on this point, but my best guess is that either of these is valid:
This indents everything after the first line by 8 spaces, and then adds an additional 4 and 8 spaces of indentation to the method signature and method body, respectively.
My own personal preference, when not forced to follow Sun's standard, would be to do what Jeroen did in his first example. However I don't believe that's supported in the standard. Whether or not it's something they'd penalize you for in the
SCJD, I don't know.