I finally got this to work after reading just about every forum topic on HSQL 
and all the different error messages such as:
MBEANS THAT ARE THE ROOT CAUSE OF THE PROBLEM
jboss.jca:service=ManagedConnectionFactory,name=DefaultDS
jboss.jca:service=DataSourceBinding,name=DefaultDS
ejbFindByCustomerId Table not found: CUSTOMER_ACCOUNT_XREF
Verification of Enterprise Beans failed ???
HSQL-DB Connection Refused
The part that isn't clear in the tutorial or in the hsqldb-ds.xml comments is 
that the xml tag which is found ABOVE the mbean declarations (and just before 
the closing </local-tx-datasource> tag) needs to be altered as follows: 
change from: jboss.server.Hypersonic,database=localDB
change to:jboss:service=Hypersonic

Hope this helps and I appreciate this forum!

Cheryl

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