I am using JBoss AS 4.0.3 SP1 and I want the AS to use a MySQL DB for a certain application.

When starting JBoss it recognizes the DB correctly:

[ConnectionFactoryBindingService] Bound ConnectionManager 'jboss.jca:service=DataSourceBinding,name=MySQLDS' to JNDI name 'java:MySQLDS'

When deploying my application, the server recognizes my persistence.xml and my hibernate.properties files. But it seems, it does not apply them:

[Ejb3Deployment] Found persistence.xml file in EJB3 jar
...
[Environment] Hibernate 3.1
[Environment] loaded properties from resource hibernate.properties: {hibernate.cglib.use_reflection_optimizer=true, hibernate.dialect=org.hibernate.dialect.MySQLDialect, hibernate.connection.datasource=java:/MySQLDS, hibernate.hbm2ddl.auto=create}
...
[InjectedDataSourceConnectionProvider] Using provided datasource
[SettingsFactory] RDBMS: HSQL Database Engine, version: 1.8.0
[SettingsFactory] JDBC driver: HSQL Database Engine Driver, version: 1.8.0
[Dialect] Using dialect: org.hibernate.dialect.HSQLDialect

This is my persistence.xml file:

<persistence>
 <persistence-unit name="manager1">
 <jta-data-source>java:/MySQLDS</jta-data-source>
 <properties>
 <property name="hibernate.connection.datasource" value="java:/MySQLDS" />
 <property name="hibernate.dialect" value="org.hibernate.dialect.MySQLDialect"/>
 <property name="hibernate.hbm2ddl.auto" value="create"/>
 </properties>
 </persistence-unit>
</persistence>

And this is the hibernate.properties file:

hibernate.hbm2ddl.auto=create
hibernate.connection.datasource=java:/MySQLDS
hibernate.dialect=org.hibernate.dialect.MySQLDialect

Can somebody tell me, what I am doing wrong?