This is difficult question which may be the reason why nobody has answered yet.

We run several standalone tomcat on solaris and linux. 
They serve mainly dynamic pages with tight database access.
I have no clue whith the XML to HTML stuff.

>From my experience with it I give a guess:

1) 1000 MHz, 512MB and a desktop harddisk should be sufficient
2) standalone configuration is the best choice according to your description
-- 
HTH Bernhard Wraase

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