It is easier to test applets  with a web server, but your solution should
work ok.
A web page should pick up classes from anywhere on your classpath,
if the browser jvm is using that classpath

I do suggest that you only have one jdk at a time in your classpath though.
also it is usually a good idea to add '.' (the current directory) to the
classpath.
so that you can run from the directory containing the class (or the
package root for the class tree)

the other thing you can do is compile/run the classes with an explicit
classpath set
eg java  -classpath canvas.jar com.qlt.canvas.test.Test
where the classpath is set to canvas.jar to look for
com.qlt.canvas.test.Test
running java canvas.jar com.qlt.canvas.test.Test
would mean that Test.class has to in /com/qlt/canvas/test/ from
somewhere on the classpath