You don't need to import test.*; in test3.java, because class test3 is already in the package test.
It should be able to find class test2, but you need to set the classpath correctly when you compile and run the program. Set the classpath by using the -cp option on the command line. The classpath should include the base directory of the package (in this case: C:\MyJavaProg). Example:
javac -cp C:\MyJavaProg C:\MyJavaProg\test3.java
java -cp C:\MyJavaProg test.test3
My java path is set to C:\Program Files\Java\jdk1.6.0_06
I don't know what you mean with "java path" (do you mean PATH or CLASSPATH?), but you should not set the classpath to the JDK installation directory. It's better to not set the CLASSPATH environment variable at all. Make sure that the bin directory of your JDK (C:\Program Files\Java\jdk1.6.0_06\bin) is added to the PATH. Step 4 of the JDK installation instructions explains how to do that.