When trying to use an applet inside a servlet using the applet tag:
out.println("<applet code=appletname>" + "</applet>")
Two things must be kept in mind:
1.You must include the codebase in the <applet> otherwise the applet class will not be located. So use something like out.println("<applet code=appletname" + "codebase='/'>" + "</applet>")for the home directory.
2.You must place the applet class along with the HTML documents. GIF and JPG problems occur when you keep the applet class in the directory, where the other java classes are usually kept, or with the servlet classesthen the client's browser is not able to locate the applet class.