Here comes a brief answers to your questions:
1) Jepp, you need to configure your web server to support JAD (and JAR) files. Follow the tutorial at http://www.iisfaq.com/default.asp?View=A152, but instead of adding those MIME content extensions and types listed in the tutorial, add:
.jad >> text/vnd.sun.j2me.app-descriptor
.jar >> application/java-archive
2) That's another server issue. Tutorial for creating subdomains can be found at http://www.iisanswers.com/articles/dns_for_iis.htm.
You also need to rename 1.wml to index.wml and add index.wml in your web server list of default documents.
Mika / Forum Nokia Developer Support