Hi Nanditha
Find out the jre version your browser is using(Internet Options->Advanced->
Java(Sun) in the case of I.E). If you are using only a single version of jre, try moving the connector jar in the path C:\Program Files\Java\jre(x)\lib\ext directory. If you are using multiple versions of jre, move this jar to the version, your browser is using to display the aaplets.
You see, as I presume, eclipse is able to locate the connector as it is added into the classpath. But the browser also needs to be able to access this connector to display the applet correctly.