Local OSM server on windows

Hello all!
Is there a way to make all these possible:
- users want to view the map using desktop Java appliation with some moving markers on it - markers can report their positions in real time and desktop application can handle it;
- users want an application to have routing functionality;
- users also want to edit the map - add/delete some specific information;
- users does not have a possibility to download the map from the internet every time.

As far as I understood, fisrt I need to do is to set up a local map server:
- download the area users interested in from planet.openstreetmap.org into local .osm file;
- edit downloaded .osm file in JOSM editor;
- set up PostreSQL;
- set up PostGIS extension to PostgreSQL;
- import local (edited) .osm file into PostgreSQL using osm2pgsql;
- set up Mapnik to generate tiles from PostgreSQL/PostGIS;
- set up Apache Web Server with mod_tile;
- create Java desktop (Swing) application with JMapViewer component.

If I put down everything correctly :), I want to ask some questions:
- is described way correct? or there is some other (simpler) ways to do that - may be to use Shapefiles and geotools instead of Mapnik?
- how to set up Apache+Mapnik+PostGIS on Windows to make it a tile server for JMapViewer like tile.openstreetmap.org - I could not find any tutorial?

Thank you all in advance for answers!