FYI, jboss-ws4ee.sar contains jboss-ws4ee.war, which contains the invalid web.xml that was being referred to in previous posts.
A fix for this was subsequently checked into jboss CVS and should have been included in 4.0.3RC1.
I suggest you try jboss-4.0.3RC1.
You'll probably still need to comment org.jboss.web.tomcat.tc5.StatusServlet out of web-console.war's web.xml file since I don't think the jboss folks plan to de-couple jboss from tomcat there.
This has been covered in the following posts:
If you still have problems/errors after following the steps outlined in the above-mentioned posts, I suggest you post to the Jetty mailing lists. (they still actively support integration with jboss)
Cheers Frank, informative and to the point!