What is the problem in having the home/remote interfaces in the classpath this way? - Why are you doing this?
You do not need to do it at all, the server can get access to the classes when you deploy the jar file.
Have you seen this approach recomended anywhere?
So the answer to yopost is use the approach that works because that is the correct way to do it.
While executing session bean, jboss will need to the home/remote interface classes of the entity beans. Now, if I am deploying the entity bean as a seperate jar file and session bean as a seperate jar file, then while executing the session bean, would jboss take the home/remote interface classes of entity beans from entity bean's jar files?
I don't think so, the reason being that, earlier I was using jboss 2.4. With that, if I dont put the extracted classes of the home/remote interfaces of entity bean in jboss's classpath, then it will give NoClassDefFoundError for these interface classes of entity beans while executing the session bean. It will work only if I put the extracted classes of home/remote interfaces of entity beans in the jboss's classpath.
Ok, with JBoss 3.2.xyou should not be editing the classpath of the server to include the interfaces to your beans.
In the past I have deployed session beans in one jar that use session beans in another jar without problems (I haven't tried using entities in another jar but I am assuming that the behaviour is the same).
Alternatively you could just package everything into an ear so that the different components can be deployed together.