Hi mate,
don't know if you solved the problem, but I had _exactly_ the same problem, i.e 
the database was up and running and all tables were created. After a lot of 
hair-pulling I finally discovered that the hibernate.cfg should be updated. So 
in

    $JBPM_HOME/src/config.files/hibernate.cfg.xml

i replaced the jdbc properties

    <!-- jdbc connection properties -->
    ....

with

    <property 
name="hibernate.dialect">org.hibernate.dialect.HSQLDialect</property>
  |     <property 
name="hibernate.connection.datasource">java:/DefaultDS</property>
  | 
(Then of course a build.deploy) and it finally worked.

Cheers,
ml

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