Please help me out here....
and I typed the wrong class I configured in jbpm.cfg.xml for "scheduler" sevice its the following entry I am using
<service name="scheduler" factory="org.jbpm.scheduler.db.DbSchedulerServiceFactory" />
what used to be in the SchedulerServlet is now (jBPM 3.2.x) implemented in the JobExecuter servlet, if you deploy jBPM inside a war file. If you take the ear (enterprise version), ejb timers are used. Have a look at the jbpm-console.war/WEB-INF/web.xml and you'll find the config sections at the bottom for both approaches.
Regarding the jbpm.cfg.xml config section you are referring to, I'd take EjbSchedulerServiceFactory as scheduler factory.