I come from a .NET background and am completely new to Java and am trying to get my head around the Java project structure.
My typical .NET solution structure conta
Okay so in java you have three different types of access to a classes member functions and variables
public protected package-private and private
All classes in the same package can see each others public, protected, and package-private elements.
Packages are not hierarchical in the system. Usually they are organized in a hierarchical way, but as far as runtime is concerned com.example.widgets is a completely different package from com.example.widgets.cogs
Packages are arranged as directories, which helps keep things organized: your file structure is always similar to your package structure.
They are planning on adding a module system to Java in JDK7 (called Project Jigsaw) and there is an existing module system called OSGi. These module systems will/can give you a lot more flexibility and power then the simple package system.
Also, package names are usually all lower case. :)