I think u should set  u r classpath.

CLASSPATH = %CLASSPATH%.;C:\j2sdk1.4.1\jre\lib;

Any problem with the slightly different designation between the 2 references
to j2sdk1.4....

SET Path=%Path%;C:\j2sdk1.4.0_01\bin
CLASSPATH = %CLASSPATH%.;C:\j2sdk1.4.1\jre\lib;

Path is defined so you can type javac at the command
line instead of having to type
C:\j2sdk1.4.0_01\bin\javac everytime. CLASSPATH is a
Java specific variable that it uses to find classes.

First you haven't told us what OS you are using, I am
assuming Windows, but if this is Windows NT or above,
this won't work because it ignores the autoexec.bat file.

Found the problem...

should be j2sdk1.4.1_01 NOT 1.4.0_01

Now just trying to find a good newsticker applet to download and tear apart
to study.

there is one little typo error.
CLASSPATH=%CLASSPATH%;.;C:\j2sdk1.4.1\lib\tools.jar
But the Classpath entry in the autoexec.bat is useless
(you do not need  it).