Resources should not be an issue here.
I'd recommend setting it to use 1Gb RAM max (768Mb maximum if you are short of memory), and put the index on local storage, NOT shared. That config will handle 25 users quite happily.
I think we need to see the logs of errors and freezes,
Can you let us know exactly what problem you're having with installation? You mentioned you cannot install it yet you're able to attempt to login? Do you receive any error messages?
Please also have a look at the Jira server logs and let us know what errors you see when you attempt the installation or login.
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