I found a solution, i had to get the fedex certificate and import it into my truststore. Here is a link to the fedex test server certificate. http://fedex.com/us/developer/downloads/dev_cert.zip
keytool -import -keystore C:\Development\JBoss\jboss-5.1.0.GA\server\default\conf\dev.truststore -storepass changeit -trustcacerts -alias fedexbeta -file C:\Development\JBoss\jboss-5.1.0.GA\server\default\conf\gatewaybeta_2011.cer