The problem is that the BeanDeployer runs with a tcl that is associated with the conf/bootstrap-beans.xml deployment. This is the NoAnnotationURLClassLoader(bean=BootstrapClassLoader) that only has the server bootstrap libs in its classpath as Alexey showed. This cannot load the security-config_5_0.xsd schema from the server/xxx/lib/jboss-metadata.jar You need to specify the vfsfile url of the schema file to get this to parse. Ideally you should be able to do: | <jbsx:policy | xsi:schemaLocation="urn:jboss:security-config:5.0 vfsfile:${jboss.server.lib.url}/jboss-metadata.jar/schema/security-config_5_0.xsd" | but we are not resolving system property refs as part of the system id resolution, so I had to specify the full vfsfil url, in my case: vfsfile:/Users/svn/JBossHead/jboss-head/build/output/jboss-5.0.0.CR1/server/default/lib/jboss-metadata.jar/schema/security-config_5_0.xsd It still failed to work because the org.jboss.security.config.PolicyConfig does not exist in my workspace, but it got past the parsing error. I'll create a feature request for the JBossEntityResolver.resolveEntity to try to run the input systemId through property resolution as without this its not practical to use vfs urls in config files. View the original post : http://www.jboss.com/index.html?module=bb&op=viewtopic&p=4141858#... Reply to the post : http://www.jboss.com/index.html?module=bb&op=posting&mode=reply&a...