Compiling to out/test versus out/production

Hello,

The Project Structure | Modules dialog allows you to configure source roots
and test source roots for your modules. Classes from test source roots get
compiled into out/test.

I see that Intellij IDEA by default places my .class files into
out/production. I see there's also an out/test dir.

How do people generally set up their code to use the out/test dir?

Do you change the compiler setting somehow with a clause such as "if
class name has the form Test*.java, then output the .class file to
out/test"?

But then how do the test classes run, if their separated out from the
out/production classes (given that the former depend on the latter)?

I'm a newcomer to the whole out/production/test thing, so please be
kind. And keep things simple for me!

--
Dmitry Jemerov
Development Lead
JetBrains, Inc.
http://www.jetbrains.com/
"Develop with Pleasure!"