How are you setting the security domain to be used?
Moreover, please note the <username digestPassword="true"
useNonce="true" useCreated="true"/> is to be set on client side
(even if this is not the reason of your issue).
Finally, as I suggestion, I'd say take a look at the org.jboss.test.ws.jaxws.jbws1988
testcases, they run on all the supported target container, including JBoss 4.2.x.
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