ok with some more digging around it seems the problems has been documented and 
solved in

http://www.jboss.com/index.html?module=bb&op=viewtopic&t=86472

it seems i was using the old entitymanager tag in persistence.xml. When i used 
the follow all is good again.



  | <persistence>
  |    
  | <persistence-unit name="as">
  | 
  |       <jta-data-source>java:/AssetDS</jta-data-source>
  |       <properties>
  |             <property name="hibernate.hbm2ddl.auto" value="update"/>
  |             <property name="hibernate.dialect" 
value="org.hibernate.dialect.MySQLDialect" />              
  |       </properties>
  |    
  | </persistence-unit>
  | 
  | </persistence>
  | 

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