Judging by your code, you seem to have little experience in programming java applets. I suggest you go over some basic java applet skills, then ease your way into developing more complicated applets.
I want to be able to take persay... a bullet object and every time I call the bullet object it will create a new bullet that animates. (For instance when I press space bar a bullet is created and fly's x amount to the right) I am able to make the bullet... I'm able to make the bullet fly to the right animated...
What is the bullet? Is this an image that you are trying to animate? If you describe it a little more, i can give you some basic code to work with.