how to compile a program with tomcat

hi
I installed tomcat3.3 successfully. It is is properly starting. But I don't understand where we should save our programs and how to compile them?
I saved my first prog on C:\ and then compiled it as
c:\javac helloworld.java
But it is giving error as package doesn't exist and cann't resolve the symbol
my classpath and path is as follows:
set TOMCAT_HOME=c:\tomcat3.3.1a
set JAVA_HOME=C:\jdk1.3

set PATH=c:\jdk1.3\bin;
set CLASSPATH= .;c:\jdk1.3\jre\lib\rt.jar;
set CLASSPATH=.;C:\tomcat3.3.1a\lib\common\servlet.jar;C:\tomcat3.3.1a\lib\common\jasper-runtime.jar;%CLASSPATH%
please help

You can use any convention you want for your project directories, Tomcat does not care about .java source files. However, you must transfer your compiled class files to the directory structure required by the servlet API.
Instead of struggling with the Environment CLASSPATH, which is prone to many errors, I recommend you learn how to use ANT for compiling servlets. ANT lets you write out the classpath for a given compilation as part of the build.xml instructions. There is a reason that ANT has won so many awards - it simplifies the life of the programmer.
Bill