Ok, I am able to get multiple demos running, it just took some tweaks.
1) Delete fitcDemo-web.xml and oflaDemo-web.xml from the red5.war/WEB-INF/classes directory.
2) Add this to web.xml in fitcDemo.war/WEB-INF/classes:
<context-param>
<param-name>contextConfigLocation</param-name>
<param-value>WEB-INF/classes/*-web.xml</param-value>
</context>
3) In the beanRefContext.xml, both demos need to have defaultContext.xml, red5-core.xml and red5-common.xml. You do NOT want the oflaDemo-web.xml and fitcDemo-web.xml in there. Those files get loaded by the red5 war loader.
After that, I was able ot have both demos running no problem.