ok. The app seems to be working after I changed jtds.jar to compile time dependency and removed the server/lib/<subfolder>/jtds.jar from server path. But it's not perfect, b/c jBoss6 is still throwing exceptions, saying
"
Caused by: org.jboss.resource.JBossResourceException: Apparently wrong driver class specified for URL: class: net.sourceforge.jtds.jdbc.Driver, url: jdbc:jtds:sqlserver://<server>:<port>;database=<db>".
If I used provided scope and put the jar back in lib/<subfolder>, I'd get ClassNotFoundException. It's WEIRD.
Any insight is appreciated, jaikiran pai!