Look in the database at the table jbp_users. There should be two entries: "user" and "admin". Look at the column jbp_enabled - it should be set to a binary '1'. (You might have to use the Query Browser, when I used the mysql utility for the select, the values in the jbp_enabled showed up as smiley faces.)
Also, could you post your *-ds.xml file?
Both "user" and "admin" are created. jbp_enabled is set to 1. My *-ds.xml file is as follows
Still facing the same issue.
Issue resolved. I was using "mysql-connector-java-3.0.17-ga-bin.jar" instead of "mysql-connector-java-5.1.6-bin.jar" which was causing the issue's. Surprisingly however the using the former (3.0.17) the database is created and you can even create new user's in the same. Not sure weather this is a bug.