WebSphere with Host on Demand Security concerns -- MIDRANGE-L

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We recently purchased a 270, running WebSphere Application Server
Standard Edition and are in the process of setting up Host on Demand.
Intent is to have our distributors place orders over the web, hitting
our 270 first for HOD, then routing to production box for Order
Processing programs.

Question(s) ... what is the best security plan?  Should SSL be used?
Should we use VPN?  270 is running OS/400 level 40 security but
production box still at level 30.  Should production box be moved to
level 40 first?

Any and all feedback would be greatly appreciated.

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