Newbie - Keep getting ResourceNotFoundException

I'm trying to make a simple HelloWorld example, and I'm doing this
from inside the doGet method in a servlet:

------------------
Velocity.init();
VelocityContext context = new VelocityContext();
context.put("name", new String("Velocity Test"));
Template template = null;
try {
  template = Velocity.getTemplate("mytemplate.vm");
  template.merge(context,response.getWriter());
}
catch(Exception e){
  e.printStackTrace();
}
------------------

Where does it look for the template? Can it be on the file system, or
must it be accessible via HTTP? I have now tried to pint it directly
to the path where the file is, and i get this error:

------------------
org.apache.velocity.exception.ResourceNotFoundException: Unable to
find resource
'/C:/jakarta-tomcat-4.1.10-LE-jdk14/webapps/yaf/mytemplate.vm'
------------------

And the file is there!? Please advice, what is my (simple) problem?

--
Med venlig hilsen/Best regards,
 Søren Neigaard mailto:neigaard@xxxxxxxx
--
 "First we thought the PC was a calculator. Then we found out how to turn 
numbers into letters with ASCII ? and we thought it was a typewriter. Then we 
discovered graphics, and we thought it was a television. With the World Wide 
Web, we've realized it's a brochure."