I had something similar with Alfresco 1.4 community but I believe this is related to the server itself and/or to JBoss. I was getting some strange Out Of Memeory Errors (which were not solved by my "fix") so just in case it helps you, I addded this line to the script taht satrts JBoss, which in my case is:
/etc/rc.d/init.d/jboss_init_redhat.sh
I added:
JAVA_HOME=${JAVA_HOME:-"/usr/local/jdk"}
as the first line in the script.
In my case while debugging the problem I noticed that JBoss was telling me that it could not find a JDK and was using a JRE.
In your case perhaps you need to setup an environmental variable in Windows. So I think your problem is related to the Java and/or JBoss environments on your machine.