If you read docs bit more carefully you will notice also talk about sub-deployments
updated version of that doc is also preferred https://docs.jboss.org/author/display/AS72/Class+Loading+in+AS7#ClassLoadinginAS7-JBossDeploymentStructureFile
First of all thanks for your reply!
Believe me I did try to read it carefully, however I'm obviously missing something and that's why I've posted this question. If you do know what I'm missing you'll be more than welcome to share your knowledge and let me see my mistake.
What I'm assuming as per the comments within the xml, is that the <deployment> element might refer to the lib module within the EAR so I'd say that settings within this element apply to this module but I'd like not to assume.
¿Do you know of any other and possibly better documentation regarding this configuration file and all of its elements and attributes?