looks like it still loads some old persistence.xml as this error indecates:
18:34:58,970 ERROR [org.hibernate.internal.util.xml.ErrorLogger] (MSC service thread 1-4) HHH000196: Error parsing XML (5) : cvc-complex-type.3.1: Value '1.0' of attribute 'version' of element 'entity-mappings' is not valid with respect to the corresponding attribute use. Attribute 'version' has a fixed value of '2.0'.
18:34:59,095 ERROR [org.hibernate.internal.util.xml.ErrorLogger] (MSC service thread 1-4) HHH000196: Error parsing XML (5) : cvc-complex-type.3.1: Value '1.0' of attribute 'version' of element 'entity-mappings' is not valid with respect to the corresponding attribute use. Attribute 'version' has a fixed value of '2.0'.
18:34:59,144 INFO [org.hibernate.ejb.Ejb3Configuration] (MSC service thread 1-4) HHH000360: Unable to resolve mapping file [META-INF/ProcessInstanceInfo.hbm.xml]
18:34:59,144 WARN [org.hibernate.internal.util.xml.DTDEntityResolver] (MSC service thread 1-4) HHH000223: Recognized obsolete hibernate namespace http://hibernate.sourceforge.net/. Use namespace http://www.hibernate.org/dtd/ instead. Refer to Hibernate 3.6 Migration Guide!
the other error about sequences could be related to the older schema that was generated by hibernate 3 and now hibernate 4 uses slightly different approach to id generators, so you could try to drop the schema on db and let hibernate recreate it.
HTH