Ken, I have updated build target for websphere 6.0.2 to exclude jars from application. Please advise if I can do the same thing to 6.1 and if we should do something to xercesImpl.jar (optional to exclude from application bundle)

Extra config. for websphere 6.1:
1) In the Websphere admin console, go to Appication -> Enterprise Applications
2) Click on your application name
3) Click on "Class loading and update detection"
4) Give some value for "Polling interval for updated files" as this is a required input
5) Set "Class loader order" to "Classes loaded with application class loader first"
6) Set "WAR class loader policy" to "Single class loader for application"
7) Click "Apply" and save master configuration

Extra config. for websphere 6.0.2:
1) In the Websphere admin console, go to Appication -> Enterprise Applications
2) Click on your application name
3) Set "class loader mode" to "parent last"
4) Set "WAR class loader policy" to "application"
5) Click "Apply" and save master configuration

Extra config. for oc4j 10.1.3 (already in the knowledge base):

1) Click on the application name
2) Click 'Adminstration' tab.
3) Go to task 'Related System Mbeans'
4) On the left hand panel go to J2EESearver, then J2EEApplication
5) Find your application and then WebModule and application name
6) Select "Operations" tab, find setDistributable and make it false

websphere extra configs. NOT in the knowledge base yet. Need to update.

Updated the KB article for WebSphere: http://support.icesoft.com/jive/entry.jspa?categoryID=80&entryID=773