Based on the text of the error message I suspect that you compiled your code using JDK 6 and then are trying to run it with JDK 5.
So when you set JAVA_HOME what did you set it to? (I assume you set JAVA_HOME on the machine running JBoss AS?)
On the machine running Eclipse, which JDK are you using? To find out, open a command prompt and enter "java -version". (Also check the eclipse.ini file, it's in the Eclipse installation directory, to see if you have a "-vm" entry. If so, look at the line after "-vm" - that is the JDK you are using.)
do i need to change the JDK version used by the Server domain ??
I don't understand this question.