This week's book giveaway is in the OCMJEA forum. We're giving away four copies of OCM Java EE 6 Enterprise Architect Exam Guide and have Paul Allen & Joseph Bambara on-line! See this thread for details.
All notify does is move a waiting thread to ready state. The current thread (the one that invoked notify) will still run until it stops for some other reason - most likely, either it will finish executing the code it's supposed to execute, or eventually the thread scheduler will pause it so another thread can have a chance.