1. no
2. no, it's just an applet, you don't need a servlet container
3, 4. obviously you'll have to do something more appropriate to your version here. (the replace function is available at the postgresql cookbook.)
5, 6. If you want it to work with the MS 1.1 VM you'll have to strip out all the package names from the 4 files used in the cb client and recompile. If you can force all your users to download a modern JVM then you can use the normal jar unmodified.
7. Either your jar is corrupt or your server isn't sending it to the client properly.
