Is Phalanger php compiler stable enough for production environment? Does it need some extra server requirements (Web Host)? Can it be deployed using only .dll files?
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Phalanger is used in many commercial projects already. It is marked as beta only because it does not implement several PHP 5.4 functions yet.
It can be deployed standalone without a need of installing: Installation-Free Phalanger web
To ensure your environment is optimized to work smoothly with Phalanger, I would recommend to take a look on support page

Jakub Míšek
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Can you please mention some site that use Phalanger? – Handsome Nerd Aug 26 '11 at 05:04
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2e.g. sites built on http://www.jadu.co.uk/, http://www.php-compiler.net/, http://www.devsense.com/, http://wiki.php-compiler.net/, http://functional-programming.net/ – Jakub Míšek Aug 27 '11 at 10:11