I think you need to fix the location of your jboss home in the seam gen build.properties file. It thinks that C:\Applications\... is where JBoss is installed.
In the mean time you can copy your ear and ds.xml from C:\Applications\... to your JBoss deploy directory.
Thanks for the advice. I will try that, I never thought of that since "seam-setup" asks for the folder every time and has not indicated anything like "Resetting your input with default folder 'C:\Applications\...'".