On Windows, you must put directory names that contain spaces between quotes:
set CLASSPATH=%CLASSPATH%;C:\Jspace\Ecafe\classes;"C:\From Pen\Tomcat\apache-tomcat-5.5.26\apache-tomcat-5.5.26\common\lib\servlet-api.jar";.
Note that you did this with the "-cp" switch - you must also do it when you set the CLASSPATH environment variable.
%CLASSPATH% is the value of the CLASSPATH variable, so the line above says "Set CLASSPATH to whatever is in the CLASSPATH now plus this additional stuff".
Note the "." as the last entry of the CLASSPATH - "." means "the current directory".
When you're writing larger programs and you want to be able to compile them from the command line easily, it's better to learn and use a build tool such as
Ant.