I wonder, if you could detect the areas inside the model at runtime (the internal overlap caused by two models intersecting) and remove them, then attach adjoining points together to create a single model, that would be pretty neat. And if you can do additive grouping, why not subtractive grouping where overlapping areas are destroyed. That might be handy to, for example, modify a cliff-face to contain a cave by putting an invisible model of the cave where you want it and then substracting it from the cliff-face. You could possibly use this to modify generated terrain rather than tacking a ready-made cliff-face-with-cave model onto it. That would save a lot of effort. Just a thought.
I moved to using the nightly snapshot of JME, thinking it would fix my crash. I found the post relating to similar crashes for NVIDIA users. So if I can find somewhere to host my example, could someone try it on Windows please?
Any webhosting provider (free and not) should support JNLP files. There are few exceptions to this but, for the most part this should be true.
If all else fails set something up with Yahoo webhosting. It's free and you'll need something eventually to post information about your games on anyway.