Java Applet policy problem in browser

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Hi everybody I need help in the following 3 issues:

1. For my project, I am building an online recruiting system for graduates and employees. Since I am familiar with C/C++ and Java only, I chose Java in Netbeans. I built an applet and i used to compile it using the run file command. It took the existing data from a text file and i worked fine when i ran it from Netbeans. This has to be available on the web, so i thought i'll embed the applet in a html file. Once i tried to do that it started giving me the java.io.FilePermission (read) error! So i tried using the policy tool, i had used the policy tool earlier when i used command prompt and notepad but now with netbeans it was the first try and i haven't been able to figure it out yet. It is still giving me a file read error. But the strange part is that there is no error when i run it through netbeans. What java.policy file should i edit? the one in the project folder or the one in the user directory?

2. Is there any way to make an applet/JFrame built in netbeans disributable? That is on a computer i can just load some files and run it. Because loading a jar file is messy. You have to install jdk to run that. Like for noobs, can't we just give them the project in a rar file and they can just unzip it and start deploying it?

3. Is there a better way then simply reading from files? Like if i have to make it distributable, will i have to set the policy entries in each computer? Does using JDBC/ODBC also require granting permissions in the policy. And if there is a better way than just text files, please do tell me!

Any help would be grateful!

Thanks