The class files should be in the same place as the JSP, not in WEB-INF/classes or WEB-INF/lib. Those directories are only for classes that run on the server, whereas your applet classes are, as far as the webapp is concerned, just dumb data to be shipped to the browser on request. So the class files have to be in a public document directory, such as where the JSP is, so the browser can ask for them and they can be served by the web server.
Before you started this thread, I answered your question in a private message. Next time you have a question, consider more carefully where and how you post it, or people will get the idea that you're taking liberties with their time by duplicating effort. [ November 03, 2005: Message edited by: Ulf Dittmer ]