welcome to the forum.
That's a really old version.
In general hypersonic is not a DB to use in production.
If you have a default configuration the hsqldb is used for ejb-timer and jms persistence. You might remove that and use a different DB if possible.
But normaly the hsqldb library will build the DB from scratch and that should work.
Do you have tried a fresh unzipped JBoss, this should create the DB and you might verify the configuration differences.