The following simple illustration portrays your test configuration:
image
This illustration is included to help you understand which parts of the test process run on which JVMs. This is important to understand when you configure the classpath for each of the JVMs. The Configuration Editor does as much as it can to set the classpaths correctly, but if you get errors about classes not being found, check that the classpaths are set correctly.

The circles represent processes and the box represents the computer; JavaTest and your application run on the same computer, but in different processes. Note that there are multiple instances of the Test VM -- a new VM is started for every test.