Go with either 8.1.7 or 9i database.
Application Server is the middle tier and requires
a database to connect to. Don't know about Oracle Lite,
might as well get the full product
Installation is not easy, but depending on your distribution
there are published patches and work-arounds available.
Just so happens I have a link:
http://www3.sympatico.ca/arothmel/oracle/817.html
Be sure to check out technet for more answers and
discussion groups.
http://otn.oracle.com/index.html
Good Luck.
alar