As near as I can tell, there's a conflict between the two xindice jars. With xindice-1.1b1.jar present as well as xindice.jar, I get:
You can't do anything meaningful with two very different versions of the software in the very same package. That's like installing windows 3.1 and windows 95 in one directory and wondering why windows 3.1 stopped working. Or like having cocoon-1.7 and cocoon-2.1 both in the classpath: it will never work.
Remove one of those (if you want to use 1.0 - remove 1.1), and use just one version. Remove also reference in xconf to the new class - o.a.x.c.embed.DatabaseImpl - it is not present in 1.0
Vadim
