Now I found an answer, and that answer is.... The META-INF/persistence.xml needs to be next to class files (did the documentation say that?) so whether you are loading from a directory or a jar file the rules are: +-META-INF | +-persistence.xml +-com +-mycorp +-blah +-Person.class +-PersonBean.class +-PersonRemote.class +-PersonLocal.class My new question is, will there a be a way in the final Embedded distro where the META-INF doesn't necessarily have to be next to the class files? View the original post : http://www.jboss.com/index.html?module=bb&op=viewtopic&p=4022787#... Reply to the post : http://www.jboss.com/index.html?module=bb&op=posting&mode=reply&a...