Can you try this against the latest AS7 snapshot http://community.jboss.org/thread/167590. I couldn't reproduce this issue there. The deployment just fails with a missing datasource (which needs to be configured). Other than that there are no errors. Let us know how it goes for you.
I got the same problem here with Sun JRE 220.127.116.11, did you try using OpenJDK?
Is anyone able to find a solution to this problem?
We are getting same error with JDK 7 and JBoss 7.1.0.Final.