Interesting. Maybe that the class that's being asked for is not available in appserv-launch.jar.
Can you try adding appserv-rt.jar in system-classpath of the domain? I don't guarantee that it will work, but it might, since this jar has the class that's not found.
Also, I'd recommend working with JDK 1.5 and reporting what happens.
If it does not work, please reopen 1409.
Thanks,
Kedar
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