The only issue with relying on ${user.home}/.java.policy is that this may not be 
configured to load in a given JDK/JRE installation so there is no guaretee it will be 
used.

The other problem with your policy file is that you are using the jboss.home.dir and 
jboss.server.home.dir system property references but you don't say if you are setting 
this in the jboss server start script. Policy files are read before jboss sets these 
properties so in order to use them they must be set on the server vm command line.


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