In order to run an applet against our current database setup. You would need to set
the authentication type to be SERVER

Currently it is set to CLIENT which means that the authentication to the
database defaults to the Operating System

However applets are not run from the clients but rather the server

You can run JDBC applets inside a web page on any system with a Java-enabled
browser, regardless of the platform of your client. Your client system
requires no additional software beyond this browser. The client and the server
share the processing of JDBC and SQLJ applets and applications.

The DB2 JDBC Applet server and the DB2 server must reside on the same
machine as the Web server.

When the applet requests a connection to a DB2 database, the JDBC
client opens a TCP/IP connection to the DB2 JDBC Applet on the machine
where the Web server is running.

REQUIREMENTS

WEB SERVER,JDBC DRIVER AND DB2 JDBC Applet SERVER on the same server

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              Java Enabled Browser 
                  

The DB2 Universal JDBC driver archive is db2jcc.jar. In the .html file
associated with the applet, change the archive from db2java.zip to db2jcc.jar.
Copy db2jcc.jar to the web server

The DB2 Universal JDBC driver class name is com.ibm.db2.jcc.DB2Driver

The DB2 Universal JDBC driver client connects directly to the DB2 server so
the server and portnumber are those of the DB2 server TCP/IP listener.

TESTING APPLET CODE

appletviewer <filename>.html