1. I worked with Netbeans, it was free and very nice. Even had some basic re-factoring, and code analysis.
2. You can install Apache yourself, Or build a Java-Web project (just use HTML instead of JSPs)
Even better, it's 50$ if it's an individual purchase ( not corporate, as in purchased for you by you, regardless to how you use it ).
Once my trial is up, I am buying it.
For those who don't want to spend money, Aptana ( http://aptana.com/ ) is the way to go. It's built over Eclipse ( which I hate ), but doesn't seem to have all the cruft that makes me hate Eclipse.