Error compiling against JDK1.2.2 using Idea 3.0.4

I get the following error while trying to compile a project in Idea 3.0.4. However, individual source files compile fine, the problem is only when I try to compile either the whole project or individual packages.

Any help would be appreciated.

Information: 1 error

Information: 0 warnings

Information: C:/data/hh/hh_java/src/com/hh/clinic/servlets/LOBEXAMPLE.JAVA is an invalid option or argument.

Information: Usage: javac Information: where includes: Information: -g Generate all debugging info Information: -g:none Generate no debugging info Information: -g:{lines,vars,source} Generate only some debugging info Information: -O Optimize; may hinder debugging or enlarge class files Information: -verbose Output messages about what the compiler is doing Information: -classpath Specify where to find user class files Information: -sourcepath Specify where to find input source files Information: -bootclasspath Override location of bootstrap class files Information: -extdirs Override location of installed extensions Information: -d Specify where to place generated class files Information: -encoding Specify character encoding used by source files Information: -target ]]> Generate class files for specific VM version

Error: line (0) The compiler did not terminate normally. Exit code is 2

Information: -deprecation Output source locations where deprecated APIs are used