cant update my post for some reason.
Anyways the problem was that there is a conflict between the xerces jar tomcat is using
and the one in the app. I removed the xerces jar from the app and the error went away.
see
http://www.nabble.com/org.apache.xerces.parsers.XML11Configuration-cannot...
and
http://xerces.apache.org/xerces2-j/faq-xni.html#faq-2
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