Do you hvae another class called LocalProjectHome in your deploy directory(in another jar file)? JBoss uses the Unified Class Repository so i think there is one repository which would store all classes from all the ejb-jars. There is a way to overcome this by using one of the jboss-*.xml files.
Yes that is the problem. I did a search for this class and found some copies of the JAR in the tmp tree. Seems they didn't get deleted correctly. Maybe an unclean shutdown.