A while ago i wrote a detailed article about Hibernate key generators: http://blog.eyallupu.com/2011/01/hibernatejpa-identity-generators.html
Choosing the correct generator is a complicated task but it is important to try and get it right as soon as possible - a late migration might be a nightmare.
A little off topic but a good chance to raise a point usually overlooked which is sharing keys between applications (via API). Personally I always prefer surrogate keys and if I need to communicate my objects with other systems I don't expose my key (even though it is a surrogate one) – I use an additional ‘external key’. As a consultant I have seen more than once 'great' system integrations using object keys (the 'it is there let's just use it' approach) just to find a year or two later that one side has issues with the key range or something of the kind requiring a deep migration on the system exposing its internal keys. Exposing your key means exposing a fundamental aspect of your code to external constrains shouldn’t really be exposed to.