Here is a snippet of AS7.1 configuration for a distributed synchronous cache:
<distributed-cache name="myDistCache" mode="SYNC" owners="2" />
and here is a replicated synchronous cache
<replicated-cache name="myReplCache" mode="SYNC" />
There is a jboss-as-infinispan_1_1.xsd schema file distributed with JBoss AS7.1 which gives some insight into all the possible attributes.
Thanks Manik, Tristan.
As per Maniks suggestion , I upgraded to 7.1.0 Final and using replicated cache. Caching works. Manik , I am using two different physical machines ( running 3 servers /Jboss Instance ) on each machine. The idea was to get extra benefit of Distributed cache so that there will be cache space availabe at any given point of time. Please correct me if I views on distributed cache are wrong