It looks like the instructions are broken. I first noted that there are missing files cited by INSTALL.html: cp: lib/jboss-ejb3-client.jar: No such file or directory cp: lib/jboss-annotations-ejb3.jar: No such file or directory cp: lib/hibernate-client.jar: No such file or directory Then when I tried to configure a new server (on my Mac OS X) I got the "Invalid directory" message in the pane "Create a new JBoss Server" when pointing to the 4.0.4.GA installation folder. I fixed it by running ln -s jboss-aop-jdk50.deployer jboss-aop.deployer from $JBOSS_HOME/server/all/deploy This made me able to create the JBoss server and later create an EJB3 project. But I'm not sure that everything is working ok. View the original post : http://www.jboss.com/index.html?module=bb&op=viewtopic&p=3973742#... Reply to the post : http://www.jboss.com/index.html?module=bb&op=posting&mode=reply&a...