I figured it out.
I had to comment the line for AS7 and uncomment the one for AS5 in installer/db/persistance.xml, run ant clean.demo and and ant install.demo.
<!-- 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" />
Now I see the Evaluation example process in the console.
/Sinha