Oops, that fix was almost correct. The translate #'translate at the end should be removed. clx-ttf almost works.
Here is a simple test program to demonstrate. Choose your favorite backend.
;;;;;;;;;;;;; (in-package :clim-user)
(define-application-frame draw-text-test () () (:panes (p1 :application :scroll-bars nil :display-function #'(lambda (frame pane) (declare (ignorable frame pane)) (with-first-quadrant-coordinates (pane 10 100) (draw-rectangle* pane 0 0 90 90 :filled nil) (draw-line* pane 20 20 80 20) (draw-line* pane 20 20 20 80) (draw-text* pane "AbCde" 50 20 :align-x :center :align-y :top) )))))
(find-application-frame 'draw-text-test :port (find-port :server-path '(:clx-ttf)) :height 120 :left 900 :top 200)