The key part of the error message is here:
Fatal Error. Unable to parse
file:/C:/glassfish3/glassfish/domains/domain1/config/domain.xml
...
javax.xml.stream.XMLStreamException: ParseError at [row,col]:[4,79]
Message:
Invalid byte 1 of 1-byte UTF-8 sequence
Look at your domain.xml file, at row 4, column 79 and see what is there.
BTW, you seem to be reporting the same problem in two forum messages.
It would be easier for us if only one thread was used for one problem.
Thanks.
Tom