UseJBossWebLoader flag ineffective in JBoss 5.0.1 GA

We are currently upgrading our platform to Java 6 ,Spring 2.5.6 and Jboss 5.0.1 GA. With Jboss 4.2 GA we are using 'UseJBossWebLoader' = true for single classloading.
Seems this flag is not working in Jboss 5.

We also tried classloader scoping options as below. But it does not help for single classloading.
<loader-repository>cws.test:loader=cws-app.ear</loader-repository> in jboss-app.xml

And in jboss-web.xml

<class-loading java2ClassLoadingCompliance='false'>
<loader-repository>cws.test:loader=cws-app.ear
<loader-repository-config>java2ParentDelegation=false</loader-repository-config>
</loader-repository>
</class-loading>

Our product EAR is structure is as below.

ProductEAR]
jars
War1
War2
Each war loads it's specific spring beans. Now we are not able to see the springs loaded under war1 context when a request is issued from war2 context.

Are we missing something? Or this is an issue with Jboss5?