Thank you to everyone who responded to my post on this subject yesterday. I'm sorry to absent myself from most of the discourse, but I subscribe only to the "digest" form of the list server and get the issues mostly after they have been resolved.
I was pleased to see that there was pretty good consensus on the issue (and that it agreed with me).
Interesting to note:
After I sent in my post I continued to browse the web looking for a more rigorous analysis of the Physlet and found the following version:
In this Physlet (Problem 2c on the web page) the simulation is portrayed in accordance with the consensus view; i.e the wood block does not sink deeper into the water until the oil level is below its top surface.
I am even further convinced that a simulation is a mediocre (at best) substitute for a real demonstration, if it can possibly be done.
Thanks again for all the responses.
Stuart Leinoff
Professor of Physics
Science Division Chair
ACC