So, No one has any answers to my questions?

patience is a virtue.

processing can do everything that that video shows, although maybe not in real time (i'm not convinced the video isn't generated a frame at a time).

there are SQL libraries: http://bezier.de/processing/libs/sql/

probably best idea is for you to click around the exhibition part of the main processing site and watch some examples.

Processing core/real power lies in its pixel array in my opinion. You can take a simple array and use set(x,y,value) and then use pixels[x+width*y] = value and get incredibly different results and that's not even touching the surface.

You have these widespread data format
XML
SQL
PERL
CGI
etc.

If anyone wanted to develop a scripting language to bridge the gap between any of these, creating a proof-of-concept application would be so simple to do in processing, it's scary really.

Processing is by far the best idea-to-proof-of-concept software I have seen. It's even faster than Microsoft Excel and that's saying a lot.

With this power, you have to be careful not to get sidetracked though. So many ideas come at you while making a sketch, your fingers have a problem keeping up. That's the only drawback of processing is that there is no real effective method of accurately storing the process anyone uses to create their sketch. So you can try different things.

You would be amazed how sometimes using a -ve value instead of a +ve value or even not resetting a value to zero at the correct time create some wonderful results. Sometimes even better than what you originally envisioned for the sketch.

PROCESSING ROCKS!!!

I really do appreciate everyone coming through with there responses. Your right I really do need to be more patience, I just have this cool ideal for my first data visualization project and I am eagered  to get it started. Thanks for answering some of my questions. 

" Would someone mind telling me if processing is now able to support java 1.5?"
It is using Java 1.6 for quite some time now...
Now, if you mean Java 1.5's syntax improvements (generics, foreach, etc.), it supports it officially since Processing 1.2 (and some interim releases before that).

@ Phi.lho Thanks for the answer to one of my questions. Do you know if processing can handle my simple design of:

It have been answered above: Processing has a SQL library, so you can use it to update and consult a database.
Your schema isn't very clear, real-time data won't access database directly, and if I understood well, program update takes its data from DB, not from the reverse.
Would be: real-time data --> data storage by program --> database --> program update

I suggest to first code in Processing, it is simpler. Later, if you really want to get a Java feel, you can jump the step and do the little rewriting needed to run it in Eclipse (or NetBeans), there is a tutorial about this.
At the root, Processing is Java code, with just a little pre-processing (sic) to transform the syntax sugar (#C010F1 to int, adding a class with main() around the sketch...) to code edible by the Java compiler.
If you prefer, you can go directly to pure Java code, too.

@ Phil.lho