It has been a real nightmare ever since we decided to upgrade our servers to 3.2.0. Porting our applications to 3.0.5 was very very easy and it really worked well.

1) The Jetty engine fails to load classes that dont have a package structure.. I replaced the jasper runtime and compiler jars with an older jar file which was present in jboss-3.0.5 and it worked.

2) Creating multiple instances was not possible since binding-service directory was not present. -- Some one else in the forum had also faced a similar problem if i remember correctly. I had to change the ports in some config files and it is working now.
3) The damn thing is slow compared to jboss-3.0.5.
4) Suddenly out of the blue we get java.lang.VerifyErrors. Ok may be this has nothing to do with 3.2.0, but the same thing works in jboss-3.0.5

So jboss-3.2.0 -- out you go....
jboss-3.0.5 -- here i come again.

Jason