Problems setting up website with context.xml inside META-INF

hi again
1> Using Tomcat 5.0.27 in linux Fedora Core2
2> context.xml under META-INF folder.

I made a war file of my application using command
c:\test>jar cvf simliv.jar -C . *.*

The directory Structure inside WAR is like:

*.jsp
images\
META-INF\
META-INF\manifest.mf
META-INF\context.xml
WEB-INF\
WEB-INF\classes
WEB-INF\src
WEB-INF\src\com
WEB-INF\src\META-INF
WEB-INF\lib
WEB-INF\lib\jtds-0.9.jar

and used Tomcat 5.0.27's manager option.

####Problem 1####

1>WAR file to deploy option.....giving the path to the war file
IT GIVES ME ERROR first time like
"FAIL Encountered Exception java.io.IOException : org.xml.sax.SAXParseException:
The Procession instruction target matching "[xX][mM][lL]" is not allowed"

but tomcat list the website in its Applications.
Now when i click on Reload option it says
"PASS reloaded application at path /simliv"

I notice that tomcat copies the context.xml into the catalina/localhost with the name of my war file minus .war extension.
Now when i launch browser and write down the url http://127.0.0.1/simliv

####Problem 2####
i get into my log file error saying
-cannot create JDBC Driver

I cannot run by website..
I have searched a lot on the web for guide to correctly deploying war file
if the context element is inside META-INF/context.xml but have not found any.(I need to access Database from parameters defined in context.xml)

please suggest me any tutorial or commands in tomcat manager or any article
that can help me to solve the problems listed above

thanking you