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What am I doing wrong on install--Please help

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Joined: 2006-08-27

I've installed java on my computer(windows ME operating sys) I've set my path to look like this:


I downloaded j2sdk1.4.2_12 to C: drive. The folder for that show up in the C: directory. However the "java" folder ended up on C:\Windows.
At the dos screen I can't look up the java directory or do anything with java without without going to the java directory by typing "java:" at C prompt. Even then I can't compile the "" program even though it shows up in the java directory. I get the message "cannot read"

I've gone over the instructions for a couple of hours and searched the web, and still can't figure it out.

Thank you in advance for any help.