Can you try this with jboss3.2.1RC1.
There was a problem with the way URLs were
parsed that could lead to large stacks.
I suspect you have a stack overflow that the
vm is not handling and crashing.
If that doesn't fix it, the problem is most likely
a broken java installation, try re-installing.
Hotspot VM errors are not the rarest creatures. I encounter them every now and then (and on non-JBoss code).
If the problem is persistent, I'd consider getting a newer JVM. e.g. trying the (currently) beta 1.4.2
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