Well, you're on the right track, asking questions and eager to learn ;). Ok, one of the params also calls for "wa.gif". Did you save and upload that one as well, although wa.gif was just for the purpose of the example? You can eliminate this param:
<param name=overlay value="wa.gif">
Just delete that line all together. You say the image file is dusk(1).gif. Go to where you have the image on your hard drive, right click on it, choose rename, and change it to "dusk" (get rid of the (1) ) and make sure the param calls for the image by the same name.
Here's an example:
<html>
<head>
<title>Lake example</title>
</head>
<body>
<applet code=Lake.class id=Lake width=392 height=380>
<param name=image value="dusk.gif">
<param name=href value="http://www.javascriptkit.com">
</applet>
<p align="center"><font face="arial" size="-2">Free Java applets provided by</font><br>
<font face="arial, helvetica" size="-2"><a href="http://javascriptkit.com">JavaScript
Kit</a></font></p>
</body>
</html>
Reply back if you still have trouble and I'll help you further ;).
PS: Don't forget to upload the dusk.gif again after you rename it so the param value will be the correct path to the image :thumbsup: .