Performance issue in web application

We have installed a web application that uploads a XML file to the server. The application is still in its nascent stage but deployed.
After analysis we found out that 50 to 100 hits take place at any point of time. We store the XML file as a blog in oracle and use Xquery to retrieve the data. The core apis used are Java Servlets and JSPs and the web server used in Apache Tomcat.
The hits for upload will increse by 500-600 at point of time.
I would like to know the following.
Is the technology used sufficient to handle the issue?
How can i handle the load balance in the server?

Use grinder or some other test tool to find out.

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