It looks like the problem is in Xerces, not in JAXB RI. If you look at
the stack trace, you see that Xerces is attempting to access a system
property.
JAXB RI can work with any SAX parser. So switch to, say, Crimson and
see if that would help.
--
Kohsuke Kawaguchi <kohsuke.kawaguchi_at_sun.com>