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Swap and keep a backup as follows
Rename entityengine.xml to entityengine.xml.bak
Rename entityengine-jboss.xml to entityengine.xml
Now open entityengine.xml file and modify the content accordingly.
Here basically we are setting jndi datasource names and connection manager
Comment the geronimo transaction manager
<!--<transactiontransaction-factory class="org.ofbiz.geronimo.GeronimoTransactionFactory"/>-->

Uncomment the following and modify it as given below
<transaction-factory class="org.ofbiz.entity.transaction.JNDIFactory">
<user-transaction-jndi jndi-server-name="default" jndi-name="UserTransaction"/>
<transaction-manager-jndi jndi-server-name="default" jndi-name="java:/TransactionManager"/>
</transaction-factory>

Navigate down and find the tag <datasource name=”localderby” �localderby� and then comment the following
<!--
<inline-jdbc
jdbc-driver="org.apache.derby.jdbc.EmbeddedDriver"
jdbc-uri="jdbc:derby:ofbiz;create=true"
jdbc-username="ofbiz"
jdbc-password="ofbiz"
isolation-level="ReadCommitted"
pool-minsize="2"
pool-maxsize="250"/>
-->

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  1. Clustering in Jboss 5.1.0 is easier when compared to lower version of Jboss
  2. After deployment, we can create multiple nodes in jboss and cluster all the nodes to support more load
  3. Jboss can be easily load balanced with Apache making it to create more virtual host address
  4. We can tune maximum client settings for Apache and Jboss and JVM memory settings to improve the performance of Ofbiz
  5. We can also make busyiness based, request based load balancing using Mod_jk

This howto thanks to Vignesh Sabapathi