Your persistence.xml is missing the xsd declaration. Change it to:
<?xml version="1.0" encoding="UTF-8"?>
<persistence xmlns="http://java.sun.com/xml/ns/persistence"
xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
xsi:schemaLocation="http://java.sun.com/xml/ns/persistence
http://java.sun.com/xml/ns/persistence/persistence_1_0.xsd"
version="1.0">
<persistence-unit name="MyHome">
<jta-data-source>java:/MSSQLDS</jta-data-source>
<class>com.obci.ejb3.Members</class>
<properties>
<property name="hibernate.show_sql">true</property>
<property name="org.hibernate.hbm2ddl">update</property>
</properties>
</persistence-unit>
</persistence>