Keep in mind the login-config.xml is for configuring your server component's security policies. In the SessionBean's jboss.xml, you need to make sure you reference the policy you wish to be used. For example:
would go before <enterprise-beans>. Refer to the dtd of the document for more info.
Now, for your client, you need to specify a jass config file. A good one to use is the one you'll find in the client subdirectory, auth.conf. I made a copy of this, and thanks to another poster, got it right. It now is just:
So, now in my client, I invoke the login by:
lc = new LoginContext("other", new PassLoginCallback("USERID", "PASSWORD");
Hope this helps