Just a note in case anyone else encounters this problem.
I got errors running the build.xml "test" target after generating a new app with seam-gen.
I got the error "You need to specify at least one testng.xml or one class"
I fixed that by adding a testng.xml, and the test ran; however, there were errors in the output. "Error parsing meta data jboss-local-jdbc.rar"
Looking through the output I noticed that there was an io.FileNotFound for "C:\Documents%20%and%20%Settings." The actual file was referenced correctly in several of the other lines, but I decided to start over with seam-gen and put the folder directly on the C drive with no spaces.