This explanation will save you a lot of hacking time and headache.The following steps are for Windows95 :
javac -d C:\classes C:\Sources\com\bparanj\util\*.java
javac -classpath C:\classes; Application.java
java -classpath C:\classes; Application
javac -d . -classpath C:\classes; Application.java
and the step 3 becomes :
java -classpath C:\classes; c03.Application