Yes, the Windows service is definitely suitable, but there are a few things to consider when starting a Java application as a Windows service. Most of them are described in this tutorial, which shows how to set up a Java application with our commercial all-as-in-application, AlwaysUp:
http://www.coretechnologies.com/products/AlwaysUp/Apps/RunJavaApplicationAsAService.html
Beware: you will almost certainly need the β-Xrsβ flag in Windows 2003 to prevent closing behavior on output, but things can get complicated if you catch shutdown events. Let me know if this is a problem for your situation.
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