java.security.AccessControlException: access denied (java.io.FilePermission words.txt read)


There is the error in my Java Control Panel Console thingy when I try to load my applet in a browser. I've tried IE and FireFox. Are applets unable to read files located in the same directory as the applet? Or is there something simple I have to change?

Code:
		// build the dictionary tree
		String dictionaryFN = "words.txt";
		try
		{
			BufferedReader fin = new BufferedReader(new FileReader(dictionaryFN));
			String word = fin.readLine();
			while (word != null)
			{
				dictionary.insert(word);
				word = fin.readLine();
			}
			fin.close();
		}
		catch (FileNotFoundException e)
		{
			System.err.println("FileNotFoundException: " + e.getMessage());
			return false;
		}
		catch (IOException e)
		{
			System.err.println("IOException: " + e.getMessage());
			return false;
		}
There is the code in question. Maybe I'm doing something wrong? Any help is appreciated.