In order to run the project, all edu.nmu packages must be in your classpath.
In order to utilize NewSystem functionality, you must put the java packages (found in the classes dir) directly in rt.jar ($JAVA_HOME/jre/lib/rt.jar).

You can still run the project without the NewSystem functionality, but I don't promise that good things will happen.  However, it is a nice way to see what the project would be like without the new java.lang.System class.