Check out example codes for "how to embed applet in html". It will help you in understanding the concepts better.

Code Example 1

<APPLET CODE=AppletButton.class CODEBASE=example WIDTH=350 HEIGHT=60>
<PARAM NAME=windowType VALUE=BorderWindow>
<PARAM NAME=windowText VALUE="BorderLayout">
<PARAM NAME=buttonText VALUE="Click here to see a BorderLayout in action">
<HR>
<EM>
Your browser can't run 1.0 Java applets,
so here's a picture of the window the program brings up:</em>
<P>
<IMG SRC=images/BorderEx1.gif WIDTH=302 HEIGHT=138>
<HR>
</APPLET>

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