Scott,
Unfortunatelly upgrading to higher version of hibernate doesn't seem to be an option for my case.
Anyway, I now installed the lates nightly build JB AS 7.2.0.Alpha1-SNAPSHOT and I think I got a bit further. Although the application seem to have deployed it doesn't actually work. And the reson seem to be a missing hibernate Scanner class. I attached the log file. Any idea how to jump this next hurdle?
Thanks.