1) you need to look at your undo_retention_period. This controls the growth of the undo tablespace. If you ask us to save 1 hours worth of undo, we'll grow the undo tablespace to be big enough to hold at least 1 hours worth of undo at peak (for the hour you generate the MOST undo).
since you have 6gig now, that means there was some period of time during which you generated 6gig of undo during your undo_retention_period. Unless you did something extraordinary that you will never be doing again, shrinking your undo space will only result in it GROWING again.
you can shrink your space by creating a new, smaller undo tablespace, altering the system to use that new one(use scope=both if you are using spfiles, else make sure to update the init.ora pfile as well), waiting for all active transactions to finish in the old one and dropping it. But again, it'll most likely just grow to be 6gig all over again (which in the grand scheme of things today is not that big). I would leave it be.
Read chapter 13 of the ADMIN guide for details on managing an undo tablespace.
2) shared server is like connection pooling. You have a number of shared servers (say 25) that service a large community (say 1000) of users.
Web Logic typically uses a connection pool. They'll have a pool of say 25 connections that they keep open and share amongst all of the web requests.
Just as you would not want to have double buffering going on (eg: it is best to turn off the unix file system buffer cache on mounted file systems that have Oracle data/log/control files on them, we buffer, unix buffers -- it just wastes ram and time), you don't want double connection pooling going on. In general (warning ROT -- rule of thumb -- here), you would not use shared server with a connection pool. You would stick with dedicated server.
In any case, read the server concepts manual -- it explains the difference between the two. Read the Oracle9i net guide for setup. All docs available here for 9i:
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