I fixed it, and in case anybody stumbles across this problem here's what I found:
1.Jboss doesn't fully support version 2.5 so, in web.xml you should add both and
<local-home> to point to the same thing(though I think <local-home> should be
added just so the parser won't yell something's wrong)
2. in jboss-web.xml you should also add <local-jndi-name> which should be something
like YourApp/YourBean/local -- which tells jboss -- map the bean YourApp/YourBean/local
(proprietary jboss naming format) to java:/comp/env/ejb/YourBean (if you set your
<ejb-ref-name> to ejb/YourBean)
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