To set environment variables for Java development, right click on "My Computer" and select properties, then advanced system settings, environment variables. Under user variables, set the PATH variable to include the Java bin directory. Under system variables, set the JAVA_HOME variable to the Java install location and CLASSPATH to include the servlet API jar file in the Tomcat lib directory.

2. To Set Environment Variable
Right click on mycomputerpropertiesadvanced-environment variable
Click on uservariable
Type variable name: path
Variable value: C:Program FilesJavajdk1.6.0bin;
Click on system variable
variable name: JAVA_HOME
Variable value: C:Program FilesJavajdk1.6.0

3. Click on system variable
variable name: classpath
Variable value: C:Program Filesapache-tomcat-6.0.36libservlet-api.jar