If you want to configure Oracle as your persistence manager following steps should be enough to get you going:
Step 1
Change WEB-INF/config/default/magnolia.properties
magnolia.repositories.jackrabbit.config=WEB-INF/config/repo-conf/jackrabbit-oracle-search.xml
Step 2
Configure your WEB-INF/config/repo-conf/jackrabbit-oracle-search.xml
...
<PersistenceManager class="org.apache.jackrabbit.core.state.db.OraclePersistenceManager">
<param name="driver" value="oracle.jdbc.OracleDriver"/>
<param name="url" value="jdbc:oracle:thin:@mysrv:1521:mydb"/>
<param name="user" value="myuser"/>
<param name="password" value="mypassword"/>
<param name="schemaObjectPrefix" value="${wsp.name}_"/>
<param name="externalBLOBs" value="false"/>
</PersistenceManager>
..
You need to enter the url, user and password to match your database setup. You need to set the credentials twice in the file as 2 connections are used - one for the data and one for versions. The schema is populated during the installation, so the given user needs to have appropriate permissions to be able to create Tables, Indexes and Triggers in the database.
The data connection is used for multiple workspaces and therefore requires the dynamic prefix ${wsp.name}, while the versioning PersistenceManager requires a static prefix version.
If you need to run multiple instances of magnolia against same database schema, you can add additional prefix to schemaObjectPrefix definitions of both PersistenceManagers definitions (e.g. auth_${wsp.name} and auth_version_). Please note that Oracle has a 30 characters table name length limit and therefore you should not add any prefixes longer then 6 characters to make sure that the limit will not be reached.
Step 3
Add database driver approprite for your Oracle version to the WEB-INF/lib folder and remove derby.jar file.
Side note:
With Magnolia 3.5 and JackRabbit 1.3 it is possible to use newer, so called "bundled" Persistence Manager. To do so just change the class definition of the PersistenceManager.
<PersistenceManager class="org.apache.jackrabbit.core.persistence.bundle.OraclePersistenceManager">
You can use whichever will perform better in your environment, both should be working fine with Magnolia. Again, if changing configuration, it needs to be changed in 2 places.
I have had problems switching from the default derby to Oracle db - I had to delete the repositories directory to get it to use Oracle but then on start-up was prompted to run the upgrade installer steps again - did you also get this?
It's perfectly normal, since what you're doing is start with a clean repository... which is where Magnolia stores its configuration/setup...