This document discusses environment variables important for Java development, including PATH and CLASSPATH. It provides instructions for setting these variables in Microsoft Windows Vista. The PATH tells the system where to find executables, while CLASSPATH specifies where to find user-defined Java classes and packages. The steps provided guide the user to the advanced system settings to edit the PATH and CLASSPATH variables, specifying the locations of the Java JDK bin folder for PATH and the working directory and code directory for CLASSPATH.