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Here is a JBoss tutorial on connecting to Oracle: http://community.jboss.org/wiki/SetupAOracleDataSource.

I would update your oracle-ds to match the file in the tutorial. Initially take out the additional properties defined in your xml. You can add them back when a basic connection is working. Also match the order of your tags as in their example just in case.

I will try to test an Oracle/JBoss 5.1 connection when I am able. I suspect it will be several days before I get to it though.