Your code is basically right except for two points...
This means you need to start the j loop with j = 2, not j = 1, since i%1 == 0 for all i.
3. for each number test to see if it retruns a remainder
from dividing by 2...3...4...5...until half of the number
Also, your use of continue inside that for loop is going to cause problems... that is, it's going to make the loop do nothing. Here's what I suggest...
Continue does not terminate a loop. All it does is force the next iteration of a loop.
for(j = 2; j < (i / 2); j++)
if ((i % j) == 0) break; // Terminate loop if factor of j is found.
if (j == i / 2) // If loop was terminated due to
// j going beyong loop limits...
printf("\n%d is prime",i);