I solved the XML Parsing Error. It was due to one of the xhtml file being included from template.xhtml. Header for included files seems to have changed, see header of conversations.xhtml in the jpa example in seam2 and seam1.2.1. Perhaps it should be documented in seam 2 migration guide.
The XML parsing in JSF 1.2 RI is stricter than in MyFaces.
will like to know what do the following messages in log mean..
INFO: Initializing Sun's JavaServer Faces implementation (1.2_04-b16-p02) for context 'null'
com.sun.faces.lifecycle.ELResolverInitPhaseListener populateFacesELResolverForJsp INFO: JSF1027: [null] The ELResolvers for JSF were not registered with the JSP container.