rmi and applets

I have a working server\client application working using java rmi. I am trying to convert the client so that it works in am applet but with some difficulty.

I get this error when i do appletviewer myApplet.java:

java.sercurity.AccessControlException: access denied(java.lang.RuntimePermission createSecuritymanger)

i was told to edit my policy file which looks like this:

grant {

      permission java.lang.RuntimePermission
     "createSecurityManager";
    permission java.net.SocketPermission "*:1024-65535",
        "connect,accept";
    permission java.net.SocketPermission "*:80", "connect";        
    permission java.io.FilePermission
        "c:\\home\\ann\\public_html\\classes\\-", "read";
    permission java.io.FilePermission
        "c:\\home\\jones\\public_html\\classes\\-", "read";
};

This is not one i made myself i just used it becasuse it worked at the time, is there anything that needs changing?

Also why would changing this help my applet to run because this policy is supplied to the server not the applet, help?