Hi,
first of all: you use a JPA 2.0 persistence.xml, but JBoss 5.x only supports 1.0. Maybe it is silently ignoring it ;-).
Next step: activate sql logging of the persistence layer. To do so, add this to your persistence.xml:
<properties>
<property name="hibernate.hbm2ddl.auto" value="create-drop"/>
<property name="hibernate.dialect" value="org.hibernate.dialect.MySQLInnoDBDialect"/>
<property name="hibernate.show_sql" value="true"/>
</properties>
Maybe there is a database error message show now.
Hope this helps
Wolfgang