It seems the AS7 is configured to hide JAXB implementation classes from deployed applications. It should in fact provide these classes, or another implementation of them.

11:22:52,669 ERROR [org.apache.catalina.core.ContainerBase.[jboss.web].[localhost].[/example]] (MSC service thread 1-3) Exception sending context initialized event to listener instance of class com.ocpsoft.rewrite.servlet.impl.RewriteServletContextListener: com.ocpsoft.pretty.PrettyException: Failed to load configuration.
at com.ocpsoft.pretty.faces.config.PrettyConfigurator.configure(PrettyConfigurator.java:91) [prettyfaces-jsf2-3.3.1-SNAPSHOT.jar:]
at com.ocpsoft.rewrite.prettyfaces.PrettyConfigContextListener.contextInitialized(PrettyConfigContextListener.java:40) [prettyfaces-jsf2-3.3.1-SNAPSHOT.jar:]
at com.ocpsoft.rewrite.servlet.impl.RewriteServletContextListener.contextInitialized(RewriteServletContextListener.java:45) [rewrite-impl-servlet-1.0.0-SNAPSHOT.jar:]
at org.apache.catalina.core.StandardContext.contextListenerStart(StandardContext.java:3368) [jbossweb-7.0.0.CR4.jar:7.0.0.CR1]
at org.apache.catalina.core.StandardContext.start(StandardContext.java:3821) [jbossweb-7.0.0.CR4.jar:7.0.0.CR1]
at org.jboss.as.web.deployment.WebDeploymentService.start(WebDeploymentService.java:70) [jboss-as-web-7.0.0.CR1.jar:7.0.0.CR1]
at org.jboss.msc.service.ServiceControllerImpl$StartTask.run(ServiceControllerImpl.java:1765)
at org.jboss.msc.service.ServiceControllerImpl$ClearTCCLTask.run(ServiceControllerImpl.java:2291)
at java.util.concurrent.ThreadPoolExecutor$Worker.runTask(ThreadPoolExecutor.java:886) [:1.6.0_24]
at java.util.concurrent.ThreadPoolExecutor$Worker.run(ThreadPoolExecutor.java:908) [:1.6.0_24]
at java.lang.Thread.run(Thread.java:680) [:1.6.0_24]
Caused by: java.lang.IllegalStateException: javax.xml.bind.JAXBException: Provider com.sun.xml.internal.bind.v2.ContextFactory not found

• with linked exception:
  [java.lang.ClassNotFoundException: com.sun.xml.internal.bind.v2.ContextFactory from [Module "deployment.example.war:main" from Service Module Loader]]
  at com.ocpsoft.pretty.faces.config.JAXBPrettyConfigParser.<init>(JAXBPrettyConfigParser.java:74) [prettyfaces-jsf2-3.3.1-SNAPSHOT.jar:]
  at com.ocpsoft.pretty.faces.config.spi.ClassLoaderConfigurationProvider.loadConfiguration(ClassLoaderConfigurationProvider.java:54) [prettyfaces-jsf2-3.3.1-SNAPSHOT.jar:]
  at com.ocpsoft.pretty.faces.config.PrettyConfigurator.configure(PrettyConfigurator.java:63) [prettyfaces-jsf2-3.3.1-SNAPSHOT.jar:]
  ... 10 more
  Caused by: javax.xml.bind.JAXBException: Provider com.sun.xml.internal.bind.v2.ContextFactory not found
• with linked exception:
  [java.lang.ClassNotFoundException: com.sun.xml.internal.bind.v2.ContextFactory from [Module "deployment.example.war:main" from Service Module Loader]]
  at javax.xml.bind.ContextFinder.newInstance(ContextFinder.java:146) [jboss-jaxb-api_2.2_spec-1.0.2.Final.jar:1.0.2.Final]
  at javax.xml.bind.ContextFinder.find(ContextFinder.java:289) [jboss-jaxb-api_2.2_spec-1.0.2.Final.jar:1.0.2.Final]
  at javax.xml.bind.JAXBContext.newInstance(JAXBContext.java:412) [jboss-jaxb-api_2.2_spec-1.0.2.Final.jar:1.0.2.Final]
  at javax.xml.bind.JAXBContext.newInstance(JAXBContext.java:375) [jboss-jaxb-api_2.2_spec-1.0.2.Final.jar:1.0.2.Final]
  at javax.xml.bind.JAXBContext.newInstance(JAXBContext.java:279) [jboss-jaxb-api_2.2_spec-1.0.2.Final.jar:1.0.2.Final]
  at com.ocpsoft.pretty.faces.config.JAXBPrettyConfigParser.<init>(JAXBPrettyConfigParser.java:66) [prettyfaces-jsf2-3.3.1-SNAPSHOT.jar:]
  ... 12 more
  Caused by: java.lang.ClassNotFoundException: com.sun.xml.internal.bind.v2.ContextFactory from [Module "deployment.example.war:main" from Service Module Loader]
  at org.jboss.modules.ModuleClassLoader.findClass(ModuleClassLoader.java:191)
  at org.jboss.modules.ConcurrentClassLoader.performLoadClassChecked(ConcurrentClassLoader.java:358)
  at org.jboss.modules.ConcurrentClassLoader.performLoadClass(ConcurrentClassLoader.java:307)
  at org.jboss.modules.ConcurrentClassLoader.loadClass(ConcurrentClassLoader.java:101)
  at javax.xml.bind.ContextFinder.safeLoadClass(ContextFinder.java:490) [jboss-jaxb-api_2.2_spec-1.0.2.Final.jar:1.0.2.Final]
  at javax.xml.bind.ContextFinder.newInstance(ContextFinder.java:112) [jboss-jaxb-api_2.2_spec-1.0.2.Final.jar:1.0.2.Final]
  ... 17 more