PATH is what DOS uses when you type in a command to find where that application is stored.
Example, you have an app called test1 in the C:\Test folder.
If you PATH statment had the line C:\Test in it, you could type in test1 from any prompt (C:\, C:\Windows\, C:\Dos, etc.) and you program would run, otherwise you would get a "Bad Command or file name" error unless you are in the C:\Test folder.
CLASSPATH is more or less the same thing, but what it does, is tell the
java untilities (java, javac, etc.) where to look for your .class files.
