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1. I see no problems running JBoss with Java7
2. you need to pack hibernate in your application and manipulate the jboss-structure.xml to exclude the hibernate 4 provided by the server
Thanks for your reply. I didn't quite understand. I can use infinispan, hibernate 3.5, jbossAS7 with no issues?
The issues are that you have to set the classloading (jboss-structure.xml) to disable the hibernate4 which is included in AS7 and bundle the H3 in your application.
Infinispan 5.1.2 is used inside JBoss for caching. You might use the 'library mode' / direct access to IFSP but remember if you try to go in production with an EAP version this will not be supported.
1. Is Jboss AS 7.1 and infinispan 5.1.2 comaptible with java 1.7?
Yes and yes.
3. If I plan to upgrade to hibernate 4 later, will there be any issues?
The more you stick to JPA instead of Hibernate-specific mechanisms the easier the transition will be ;-)
BTW I mention in this article the use of Hibernate 3.5 in AS 7 https://community.jboss.org/wiki/UsingGileadWithJBossAS7x, or see this link https://docs.jboss.org/author/display/AS71/JPA+Reference+Guide#JPAReferenceGuide-PackagingtheHibernate3.5orgreater3.xJPApersistenceproviderwithyourapplication