Just read through that discussion of yours.
I must say that an applet is imo not the way to go since it's quite difficult to get filesystem access.
What I would rather suggest you is to do a standard java application and offer Java Webstart support for it.
Java Webstart is something that comes with installing of the sun jre. In case you don't know what it is, check out this url and try some samples there.
http://java.sun.com/products/jfc/tsc/sightings/S20.html
(Click the webstart button and open choose to open the file right away.)
So the remaining problem is that user have to get a sun jre installed, I guess.
Anyways, as I've said I'm still willing to help you out a little bit if there is something I can do.
I'm a student of computer science and work a lot with java professionally during my trainee term. I'm working with java a year or so but I acutally have 6 years of programming experience. I've also been working with xml a lot lately if that helps.