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I believe you need to modify persistence.xml file for jBPM, as it defaults right now to JBoss AS 7. The file can be found in INSTALLER_HOME/db and change:

     <!-- for AS7 --> 
      <property name="hibernate.transaction.manager_lookup_class" value="org.jbpm.integration.console.JBPMTransactionManager" />
      <!-- for AS5 -->
      <!-- <property name="hibernate.transaction.manager_lookup_class" value="org.hibernate.transaction.JBossTransactionManagerLookup" /> --> 
      <

uncomment line for AS5 and comment out for AS7. Then rerun install demo and so on.

Alternatively you can find persistence.xml inside jbpm-gwt-console-server.war (jbpm-gwt-console-server-war/WEB-INF/classes/META-INF/) and to the mentioned changes.

HTH