Yes I looked at the LWJGL, and tried it out and made a basic canvas. But it only gives me graphics and sound, (and can it support the graphics of what I want? :S).
LWJGL supports hardware-accelerated 3D via OpenGL, which is the gold-standard of game graphics (assuming of course that you plan to target any platform outside of Microsoft's control).
I believe LWJGL is the same library used to create Minecraft (don't worry, it is certainly capable of higher-end graphics). In addition, jMonkeyEngine employs LWJGL as the foundation upon which it is built -- it is essentially an extension of the LWJGL library.
jMonkeyEngine is likely to fill-in any gaps you may find with vanilla LWJGL.