Customer report:

I have "c:\src" and "c:\src\nopackage" in the classpath. Files within "c:\src\mypackage" are in the "mypackage" package. Files in "c:\src\nopackage" are in no explicit package. Suppose class Foo is in nopackage -- therefore we use "import Foo;" in other classes. Merlin javac barks at these import statements. So the bottom line is: cannot compile classes that import other classes that are not in packages -- unless the spec has changed in some way that I'm not aware of.