Sorry Scott, I should have given the reference:
This if from 8.1.2 Inner Classes and Enclosing Instances
http://java.sun.com/docs/books/jls/second_edition/html/classes.doc.html#262890 It is the second block of sample code given.
However, on re-reading this reference I think that it is a poor example, and NOT what they meant (sorry).
Actually I believe the original quote about classes that are implicitely static probably refers to nested interfaces (which are .class files)
Member interfaces (�8.5) are always implicitly static so they are never considered to be inner classes.
[This message has been edited by Cindy Glass (edited July 26, 2001).]