That has already been reported elsewhere:
http://stackoverflow.com/questions/7363190/glassfish-not-starting-domain-with-netbeans
The solution is not to use non-english chars in the path where you hold your netbeans projects. Unfortunately there is a polish sign in my name (the windows account's name has that polish letter as well) and because of that the path to netbeans project (which was deployed in the glassfish - the path was added to domain.xml) contained that polish character. But netbeans uses ANSI character encoding and Glassfich - UTF-8. So Glassfish saw a bunch of crap in the place of that polish letter and was unable to parse domain.xml.
Once again:
The solution is not to use non-english chars in the path where you hold your netbeans projects
I hope that will save the day of the others. (My day was lost
)
Cheers!