If you are getting connections from the DataSource configured in your ConnectionFactoryLoader and bound into jndi, you are using connection pooling. It won't make your queries go faster, all it will do is shorten or eliminate the time waiting to create a connection.
How are you measuring performance? I doubt you will see much difference except under medium to high loads.
You can verify you are using pooled connections by turning on logging. You will see a particular connection being created, then you will see that same connection being handed out repeatedly.
Well, I have a doubt in this regard - is there any means of finding in the jboss 3.0.7 server side and not in the Oracle 8 database server side,
how many connections are there in the pool,
how many connections are in use and
how many connections are being returned at a given point of time?