Look at the example in the embedded kit, it shows how to define that.
note unless you provide, there are no built in pooling for your connections. CaonnectionFactory provides that abstraction. The guide written more for delevoping a connector in RAR form to be deployed in JBoss AS.
This is working in embedded Teiid. Is there a way to use it in a dynamic vdb under Jboss AS?
It should, however not sure what you mean by the does it work in Dynamic VDB. There the vdb definition semantics and deployment semantics and connection factory configuration is all specific and well defined, you would have to redo your example to fit to that model. The schema you defined in the model does not change.