In the HTML you can specify width=0 and height=0 in the applet tag... However, I know that some browsers will not run the applet if you do this, or they will enlarge the applet panel in the browser to some default size... I tested this out in IE 4.0 here at work, and it will let you run a 0 width, 0 height applet. Though I remember working in an older version of Netscape a while back that wouldn't let you put "invisible" applets on a page... You can always set the background color of the applet to the background color of the page and make it small...
-Nate