Resource adapters goes in the :resource-adapters: subsystem, and using application managed security is <security><application/></security>.
There are examples of deploying datasources and resource adapters in the AS 7 test suite, which you can borrow from. Or you can use the standalone distribution of IronJacamar and use our tooling and integration.
Thanks for the reply.
I am trying to test this under Arquillian without deploying to AS 7. The test works but without knowing how to specify application-managed-security in the embedded environment my test is not working as desired.
As is usually the case. I found the answer shortly after posting my question. I did not look at the schema for ironjacammar.xml which shows the pool and security nodes. Thanks for the help!