I run RAD 6.0 on a 1 GB memory, 2.8Ghz machine and have no issues with the 
machine except when I start up WAS.
Have you started up an instance of WAS in WDSc/RAD?
Even then, I have paging issues but the machine is still relatively 
functional.
What size have you set for virtual memory?

Don't forget the IBM redbooks, there's lot's of information on new methods 
available.
Check out these publications:

IBM System i Tools Innovation Program: Resource Guide for Modernization 
and Integration Tools for System i Applications
http://www.redbooks.ibm.com/abstracts/redp4134.html?Open

WebSphere Development Studio Client for iSeries Version 5.1.2
http://www.redbooks.ibm.com/abstracts/sg246961.html?Open

IBM System i Application Modernization: Building a New Interface to Legacy 
Applications
http://www.redbooks.ibm.com/abstracts/sg246671.html?Open

Modernizing IBM eServer iSeries Application Data Access - A Roadmap 
Cornerstone
http://www.redbooks.ibm.com/abstracts/sg246393.html?Open

If you're interested in learning Java/J2EE read this article for some 
pointers on getting started:
Web Development for RPG Programmers in Five Straightforward Steps 
http://www.mc-showcase.com/mcpress/showcase.nsf/Focus/46413D0537623E6E8625724400063CFB?OpenDocument

Good Luck
Ron


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