1 - I can’t say much either way on the 2D / 3D front either than the fact that I have no experience loading 3D models and doing pretty much any 3D algorithms, aside from 3D vector math. So however you guys decide, if it’s 3D I won’t really be able to help much.
But it seems to be that if we can get a 3D engine working so that we can just throw in models in some format, then our lives will be easier because animations are a lot easier in 3D - you make the model once and then you drag the body parts around. in 2D you’ve got to individually animate every frame, and although you can do some stuff with dragging certain body parts around like a keyframed animation, for any rotations you’ve got to draw a totally new thing.
2 - If we go with 2D, I think Slick is a good call. And with 3D probably jME.
3 - Yeah that’s unnecessary at the moment. But if we’re going Applet then I think 800x600 is mostly safe.
4 - How is control going to work? Straight up keyboard like WASD or maybe some sort of mouse interaction?