Out of curiosity, is it still going to be just a zip file that we drop into a folder and create a batch script to run, or are there prerequisites that will need to be installed?
Yes, same zip file for now. The H2 database is a single 1.6 MB jar file that I put in webapps/root/WEB-INF/lib/. The blocks.nxt and transactions.nxt (and .bak) files will not be needed anymore. Instead, the database is kept under nxt_db subdirectory, currently takes 99 MB (compared to the blocks+transactions.nxt files taking 30 MB total).
The next step I consider, but haven't decided for sure yet, will be to switch to embedded jetty. Then the configuration of the Nxt server will be done using properties file, not the web.xml file. And it may require more reorganization of the whole zip file. But this is 0.8.0 stuff at least.