What type of app are you deploying, WAR, SAR, EAR? Are you using the <loader-repository> element to set up a separate loader repository for your app? I tested the hot deploy, using a SAR with a definded loader-repository and deployed in expanded format on Jboss 3.2.5. There were no problems.
It is deployed as expanded EAR format. No seperate loader repository for application.
The hierarchichy will be something like:
Inside manifest.mf, "Class-Path" is used to refer utility jar files inside lib directory. Some jar files is going to be shared by both WEB and EJB tiers.
Sorry so late to repsond. I'm now getting the same error in a different situation. But I have another couple of questions for you.
1. What version of Jboss ?
2. You're not using a jboss-app.xml file correct? I don't see it in your post. I'm thinking that the classpath entries in you META-INF are causing jboss to think you are trying to alter the classloader. I know its not logical, but it may be worth it to put a jboss-app.xml descriptor in place with a scoped loader-repository.
Just and Idea