Aha, tomcat gets to know java compiler according to Windows environment variable
JAVA_HOME, not from CLASSPATH. Once it knows JAVA_HOME, it will reach java compiler in tools.jar. You just need open tomcat.bat and add a line:
set JAVA_HOME=C:\jdk1.2.2

You will be OK.

PS: I think my student Jabber has ever told you this sometime earlier.