You are getting further but hitting a bug that crept into 7.1.1 (the Hibernate-Infinispan references). Its fixed in the AS7 nightly build.
Also, does your application expect to lookup the "java:/XXXXEntityManagerFactory"? The jndi name is not valid under AS7 and will need to change. Might be easier to use a @PersistenceUnit annotation instead to access the EntityManagerFactory that is created for the persistence.xml persistence unit(s) during deployment.
Another issue is that you are using a JPA 1.0 persistence provider (that isn't causing problems for you but that is pretty old). You might want to upgrade to Hibernate 3.6.10 or 4.1.2 at some point.