The problem appears due to hibernate consuming a lot of perm gen!

It should be in a wiki, release note, documentation - or even set by default - 
but it is not :-(

To fix MaxPermSize :

in jboss server, customize the "run.bat" file 

set JAVA_OPTS=%JAVA_OPTS% -Xms512m -Xmx1274m -XX:MaxPermSize=256m  
-Dcom.sun.management.jmxremote 


To fix it within eclipse, use 3.3.1 or above, and customize the eclipse.ini 
file to include something like that 

-showsplash
org.eclipse.platform
--launcher.XXMaxPermSize
256m
-vmargs
-Xms40m
-Xmx512m


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