Re: your JDBC wishes: Consider IBM Cloudscape (now Apache Derby) too, which has an apache license. It's all pure java and it's easy to get going.

As to MySql vs Postgres: license issues aside, if you have transactionally complex needs (multi-table updates, etc), PostgreSQL wins hands down in my experience. There are a bunch of things about MySQL that just suck for high end SQL needs. (I like my subqueries,
and I absolutely demand transactional integrity).

There are some pitfalls to pgsql though, especially for existing SQL code using MAX and some other things which can really be blindsided (performance-wise) by pgsql if you don't use the workarounds.

MySQL is nice for what I call "raw read speed" applications. But that license is an issue for me, as it is for you apparently.

Some cloudscape info:

Some info on pitfalls of MySQL and PostgreSQL, an interesting contrast:

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