You don't need the ejb-ref in jboss.xml for a local ejb-reference. Just remove the complete ejb-ref entry from jboss.xml. The reference is already linked to an EJB with the ejb-link element in ejb-jar.xml. However, since the bean you're referencing is in a different jar, you need to specify it in your ejb-link.
Ok, the bean will now deploy. I managed to put all the class files and deployment descriptors in the same ejb file. Now, as before when the items were seperated, I am getting a METHOD IS NOT FOUND exception being thrown when trying to use a getBlog method that calles the BlogEJB to findByDate(String date). When I use the other getBlog method that looks up the BlogEJB by primary key, I get:
BlogHomeLocal not bound. Any clues would be very helpful.