This was it, solved my problem while going through the examples of JBossAtWork. 
 Just had to change the setting in common build.xml from:

 
  | <property name="hibernate.lib.dir" 
value="${env.JBOSS_HOME}/server/default/deploy/jboss-hibernate.deployer"/>
  | 

to:


  |  <property name="hibernate.lib.dir" 
value="${env.JBOSS_HOME}/server/default/lib"/>
  | 

That solved it, and I greatly appreciate the help.

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