Hello Senthil,
ur question is really interesting!!

To make the concept clear, I have created one example. Pls go through this..
In general, A member method in a class can access member variables defined in its body. It holds good for inner class also.in addition to that, Inner classes whose declarations do not occur in a static context may freely refer to the instance variables of their enclosing class. The only problem here is the local variables and member method parameters.
Because the class is inside the method, it can see the local variables in the enclosing method. But it is not physically existing inside the class. so inner class methods can't refer/access these local variables. to tackle this, the compiler creates a hidden copy of the 'final' local variable that the inner class can access safely.
the example illustrated above will give u an output of
inside local var :20
inside local class,free access to enclosing class var :0
hope this would be clear..
Others, pls correct me if I am wrong!!
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Thanks,
S.Baskaran.
[This message has been edited by Baskaran Subramani (edited September 05, 2000).]