The cause appears to be that tomcat expects the location to be expanded, and the deployer does not.

22:00:16,046 ERROR [StandardContext] Error starting static Resources
java.lang.IllegalArgumentException: Document base C:\Documents and Settings\jgreene\Local Settings\Temp\nestedjar10487.tmp does not exist or is not a readable directory
at org.apache.naming.resources.FileDirContext.setDocBase(FileDirContext.java:140)
at org.apache.catalina.core.StandardContext.resourcesStart(StandardContext.java:3940)
at org.apache.catalina.core.StandardContext.start(StandardContext.java:4111)
at org.apache.catalina.core.ContainerBase.addChildInternal(ContainerBase.java:759)
at org.apache.catalina.core.ContainerBase.addChild(ContainerBase.java:739)
at org.apache.catalina.core.StandardHost.addChild(StandardHost.java:524)
at sun.reflect.NativeMethodAccessorImpl.invoke0(Native Method)
at sun.reflect.NativeMethodAccessorImpl.invoke(NativeMethodAccessorImpl.java:39)
at sun.reflect.DelegatingMethodAccessorImpl.invoke(DelegatingMethodAccessorImpl.java:25)
at java.lang.reflect.Method.invoke(Method.java:585)
at org.apache.tomcat.util.modeler.BaseModelMBean.invoke(BaseModelMBean.java:296)
at org.jboss.mx.server.RawDynamicInvoker.invoke(RawDynamicInvoker.java:164)
at org.jboss.mx.server.MBeanServerImpl.invoke(MBeanServerImpl.java:668)
at org.apache.catalina.core.StandardContext.init(StandardContext.java:5277)
at sun.reflect.NativeMethodAccessorImpl.invoke0(Native Method)
at sun.reflect.NativeMethodAccessorImpl.invoke(NativeMethodAccessorImpl.java:39)
at sun.reflect.DelegatingMethodAccessorImpl.invoke(DelegatingMethodAccessorImpl.java:25)
at java.lang.reflect.Method.invoke(Method.java:585)
at org.apache.tomcat.util.modeler.BaseModelMBean.invoke(BaseModelMBean.java:296)
at org.jboss.mx.server.RawDynamicInvoker.invoke(RawDynamicInvoker.java:164)
at org.jboss.mx.server.MBeanServerImpl.invoke(MBeanServerImpl.java:668)
at org.jboss.web.tomcat.tc6.deployers.TomcatDeployment.performDeployInternal(TomcatDeployment.java:289)
at org.jboss.web.tomcat.tc6.deployers.TomcatDeployment.performDeploy(TomcatDeployment.java:120)
at org.jboss.web.deployers.AbstractWarDeployment.start(AbstractWarDeployment.java:362)
at org.jboss.web.deployers.WebModule.startModule(WebModule.java:88)
at org.jboss.web.deployers.WebModule.start(WebModule.java:66)
at sun.reflect.NativeMethodAccessorImpl.invoke0(Native Method)
at sun.reflect.NativeMethodAccessorImpl.invoke(NativeMethodAccessorImpl.java:39)
at sun.reflect.DelegatingMethodAccessorImpl.invoke(DelegatingMethodAccessorImpl.java:25)
at java.lang.reflect.Method.invoke(Method.java:585)
at org.jboss.mx.interceptor.ReflectedDispatcher.invoke(ReflectedDispatcher.java:157)
at org.jboss.mx.server.Invocation.dispatch(Invocation.java:96)
at org.jboss.mx.server.Invocation.invoke(Invocation.java:88)
at org.jboss.mx.server.AbstractMBeanInvoker.invoke(AbstractMBeanInvoker.java:264)
at org.jboss.mx.server.MBeanServerImpl.invoke(MBeanServerImpl.java:668)
at org.jboss.system.microcontainer.ServiceProxy.invoke(ServiceProxy.java:184)
at $Proxy0.start(Unknown Source)
at org.jboss.system.microcontainer.StartStopLifecycleAction.installAction(StartStopLifecycleAction.java:42)
at org.jboss.system.microcontainer.ServiceControllerContextAction.install(ServiceControllerContextAction.java:46)
at org.jboss.dependency.plugins.AbstractControllerContextActions.install(AbstractControllerContextActions.java:51)
at org.jboss.dependency.plugins.AbstractControllerContext.install(AbstractControllerContext.java:226)
at org.jboss.system.microcontainer.ServiceControllerContext.install(ServiceControllerContext.java:198)
at org.jboss.dependency.plugins.AbstractController.install(AbstractController.java:709)
at org.jboss.dependency.plugins.AbstractController.incrementState(AbstractController.java:429)
at org.jboss.dependency.plugins.AbstractController.resolveContexts(AbstractController.java:538)
at org.jboss.dependency.plugins.AbstractController.resolveContexts(AbstractController.java:472)
at org.jboss.dependency.plugins.AbstractController.change(AbstractController.java:320)
at org.jboss.dependency.plugins.AbstractController.change(AbstractController.java:190)
at org.jboss.system.ServiceController.doChange(ServiceController.java:656)
at org.jboss.system.ServiceController.start(ServiceController.java:431)
at org.jboss.system.deployers.ServiceDeployer.start(ServiceDeployer.java:124)
at org.jboss.system.deployers.ServiceDeployer.deploy(ServiceDeployer.java:85)
at org.jboss.system.deployers.ServiceDeployer.deploy(ServiceDeployer.java:44)
at org.jboss.deployers.plugins.deployers.helpers.AbstractSimpleRealDeployer.deploy(AbstractSimpleRealDeployer.java:53)
at org.jboss.deployers.plugins.deployer.AbstractSimpleDeployer.commitDeploy(AbstractSimpleDeployer.java:52)
at org.jboss.deployers.plugins.deployer.DeployerWrapper.commitDeploy(DeployerWrapper.java:145)
at org.jboss.deployers.plugins.deployment.MainDeployerImpl.commitDeploy(MainDeployerImpl.java:440)
at org.jboss.deployers.plugins.deployment.MainDeployerImpl.process(MainDeployerImpl.java:381)
at org.jboss.deployment.services.DeploymentManagerService.start(DeploymentManagerService.java: