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This applet -- it was downloaded from some server and is running in a browser on some other machine, right? But from what I can see in your code, you're telling it to look in the client machine for the JNDI server.
That isn't going to work unless there is in fact a JNDI server listening at port 7001 on the client. And even then it would require the applet to be signed.
Sorry, should have been more clear. The code is running within the JDeveloper applet viewer so signing not necessary at this point. I know I will have to sign for an actual deployment.
Also, I do have a WLS instance on my local machine.
I am having trouble figuring out why a stand alone application CAN find and use the data source but an applet cannot. Initially I thought that signing was necessary even when trying to run within the applet viewer, but I am able to make a JDBC connection and query without signing so I don't think that is the issue.