You better upgrade directly to RC2 as datasource configuration have changed a bit between RC1 and RC2.
For the right files. You'll also need to modify conf/login-conf.
I came across 'http://www.purposesolutions.com/Resources/EclipseJ2EE.html' in the discussion threads and noticed this comment:
o Disable clustering: If you might ever run JBoss on your machine without a network, you want to do this.
- Create a subfolder %JBOSS_DIST\server\default\deployBackup.
- Move file %JBOSS_DIST%\server\default\deploy\cluster-service.xml away into %JBOSS_DIST%\server\default\deployBackup.
Even though my machine is on a network, removing this file let JBoss continue loading the ear files. Apparently if the cluster service generates any fault, it halts the server. I did not see any apparent error messages in the console when it was halting.
btw, is there a built version of RC2 that I can download?