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.