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Sorry for the late reply, but still I was trying to make it work. I have configured it as follows:

1.       Hibernate.cfg.xml

     <session-factory>

        <!-- Database connection settings -->
        <property name="connection.driver_class">com.mysql.jdbc.Driver</property>
        <property name="connection.url">jdbc:mysql://192.168.12.99:3306/jbpm_demo?useUnicode=true&amp;characterEncoding=UTF-8</property>
        <!--property name="connection.url">jdbc:h2:file:/NotBackedUp/data/mydb</property-->
        <property name="connection.username">jbpmUser</property>
        <property name="connection.password">jbpm</property>

        <!-- JDBC connection pool (use the built-in) -->
        <property name="connection.pool_size">1</property>

        <!-- SQL dialect -->
        <property name="dialect">org.hibernate.dialect.MySQLInnoDBDialect</property>

        <!-- Enable Hibernate's automatic session context management -->
        <property name="current_session_context_class">thread</property>

        <!-- Disable the second-level cache  -->
        <property name="cache.provider_class">org.hibernate.cache.NoCacheProvider</property>

        <!-- Echo all executed SQL to stdout -->
        <property name="show_sql">false</property>

        <!-- Drop and re-create the database schema on startup? -->
        <property name="hbm2ddl.auto">create</property>

        <mapping resource="AuditLog.hbm.xml"/>

    </session-factory>

2.       Persistence.xml

<persistence-unit name="org.jbpm.persistence.jpa" transaction-type="JTA">
    <provider>org.hibernate.ejb.HibernatePersistence</provider>
    <jta-data-source>java:jdbc/jbpmDatasource</jta-data-source>      
    <mapping-file>META-INF/JBPMorm.xml</mapping-file>
    <class>org.jbpm.persistence.processinstance.ProcessInstanceInfo</class>
    <class>org.drools.persistence.info.SessionInfo</class>
    <class>org.drools.persistence.info.WorkItemInfo</class>
    <properties>
      <property name="hibernate.dialect" value="org.hibernate.dialect.MySQLInnoDBDialect"/>        
      <property name="hibernate.max_fetch_depth" value="3"/>
      <property name="hibernate.hbm2ddl.auto" value="create" />
      <property name="hibernate.show_sql" value="false" />
      <property name="hibernate.transaction.manager_lookup_class" value="org.hibernate.transaction.JBossTransactionManagerLookup" />
    </properties>       
  </persistence-unit>

3.       TestDS1-ds.xml

  <local-tx-datasource>
    <jndi-name>jdbc/jbpmDatasource</jndi-name>
    <connection-url>jdbc:mysql://192.168.12.99:3306/jbpm_demo?useUnicode=true&amp;characterEncoding=UTF-8</connection-url>
    <!--connection-url>jdbc:h2:mem:mydb</connection-url-->
    <driver-class>com.mysql.jdbc.Driver</driver-class>
    <user-name>jbpmUser</user-name>
    <password>jbpm</password>
  </local-tx-datasource>

4.       Persistence.xml in jbpm-human-task-5.1.0.CR1.jar properties changed to

<properties>
      <property name="hibernate.dialect" value="org.hibernate.dialect.MySQLInnoDBDialect"/>
      <property name="hibernate.connection.driver_class" value="com.mysql.jdbc.Driver"/>
      <property name="hibernate.connection.url" value="jdbc:mysql://192.168.12.99:3306/JBPM_DEMO?useUnicode=true&amp;characterEncoding=UTF-8" />
      <property name="hibernate.connection.username" value="jbpmUser"/>
      <property name="hibernate.connection.password" value="jbpm"/>
      <property name="hibernate.connection.autocommit" value="false" />
      <property name="hibernate.max_fetch_depth" value="3"/>
      <property name="hibernate.hbm2ddl.auto" value="create" />
      <property name="hibernate.show_sql" value="false" />
    </properties>