you have to enable development mode in web subsystem for this to work.
<configuration> <jsp-configuration development="true" /> </configuration>
There is a bug in 7.1.1.Final that does not pick this configuration. Just pick nightly build of 7.1.2 and this will work as inteded.
Got the night build, added jsp configuration and it is working fine including Eclipse+JBoss Tools.
When can we expect the next final release which will contain this fix?
Next final build will probably be 7.2.0.Final that wont be for some time.
I would recomend you to build 7.1.2.Final tag which is 7.1.1.Final with few more bug fixes.