From the call stack, it looks like it's puking on one of the jboss xml files. Make sure any instance of these files are valid XML:
I think the deployment descriptors changed from 3.0.x to 3.2, Also the ConnectException says its not able to connect to the DTD. I had this the other day for a Struts App because i was behind a firewall.
Try a standalone piece of code to see if u can connect to the DTD for jboss-ejb-jar.xml.. Im not sure if u can comment out the DTD to make it work..(not a good practice but thats how i made it work for Struts)