If your looking for a free Java compiler look no further then Sun's own SDK for Java, its free.
http://www.javasoft.com/
Its probably all you'll need while your learning Java. If you want free books to learn Java check out
http://www.informit.com
or
http://www.gamelan.com
Teach yourself Java 2 (or 1.1) in 24 Hours is a great beginners book.
If your looking for a good and FREE editor you might want to look into JBuilder Foundation by Borland, its totally free and pretty good, but if your still learning it might be a bit more then you need. (Its written in Java so its a bit sluggish at times)