Thanks. I got the problem solved. I had to set up hsqldb jbdc service to make 
it work. I went through the JMS concepts on the JBOSS site, but could find 
anywhere the concept of having hsql or any other database for running JMS (MDB) 
etc. I then gathered from the hsqldb-jdbc3-service.xml that it is trying to 
create a database/table. 

Are the messages in the queues actually persisted in a database? I do 
understand the need of persistance of the transactions and subsequently a need 
for a database, but am not sure since this is not mentioned in any of the JMS 
conceptual articles. Am I missing the point here?

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