Quality Improvement to Internal J2EE Application

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I'm investigating improving our application testing process. We currently have Mercury TestDirector, LoadRunner, and WinRunner, but our testing people aren't really using them right now. I'm working on formalizing their process a bit with these tools, and trying to get an additional tool (Mercury Monitoring and Diagnostics for J2EE) to help continuously monitor our applications.
Our current server for this stuff is also running NetIQ's WebTrends Log Analyzer, MSSQL Server (with about 30 databases only used for testing), a custom J2EE application, and MapInfo's Routing J Server (not really being used right now).

The server is a Dell Poweredge 600SC, with a 2.4 GHz Pentium 4 Processor, about 1G of memory, and about 60G of storage (2 disks, system disk is at 5% utilization, data disk is at about 90% utilization). I'm thinking about just adding some diskspace to it to allow it to handle some more applications, but I'm a little afraid about running all those apps on the same system. Of course, they wouldn't be run all at once, so the processor capacity should be ok.