Hi,
  Iam going to do an web service application in java.
Can someone suggest we right from scratch what all do I need.
What software to use and how to install that?
What is the best combination of WSDL, SOAP et etc.
What database to use and how to install it?
What server to use and how to install it?
Please try to give as much as information from the point ur trying to
tell an illiterate in Web services.
Thanks in advance.

I would recommend that you look into the open source JBoss
application.  JBoss is a free, open source J2EE server that supports
EJB, SOAP, Java servlets, and JSP.  Commercial support is available
for a fee.

You will have to ask yourself which technologies you need in order to
implement your application.  Try to stick to the simplest, most basic
technologies that will do the job you want to do.  JSP's (Java Server
Pages) are the easiest to learn and they can be quite powerful. 
Servlets and EJB require more work but they do provide more power if
you need it.

You can find more information on JBoss at:

http://www.jboss.org/products/jbossas