Client modifications as in modifying policy files, etc.
In my applet example, I did not include your JAR with my JAR, but I added it in the ARCHIVE, along with my jar.. like this:
<applet>
...
archive="myapplet.jar, license.jar, edt...jar (forgot the exact name)"
...
</applet>
I am signing my jar -- Self signing it (not with Thwarte or Verisign). But yes, that is what I want to do, connect to my OpenSSH server via an applet. I'll have to try it later on today, but I will send the email to get the sample you created.