It seems like there is no arquillian adapter to use with an embedded jboss 7 server. Just remote and managed. I like the idea of using a fresh jboss instance which each test. That way you do not run the risk of testing against a jboss instance, which holds some unknown modifications:”But it worked in test!” “Well.. it does not now…

I use this little trick to “embed” a managed jboss instance inside of a project.

You can use the maven dependency plugin to download a jboss and extract it inside of the target folder. Arquillian can then be told to use the “embedded” jboss like a managed one.

pom.xml

 
...
 <dependencies>
 
        <dependency>
            <groupId>junit</groupId>
            <artifactId>junit</artifactId>
            <version>4.10</version>
            <scope>test</scope>
        </dependency>
        <!--
        The org.jboss.spec:jboss-javaee-6.0 artifact is comprised of only standard Java EE 6 APIs.
 We strongly recommend that you do not use the Java EE API artifact with coordinates javax:javaee-api.
 The latter artifact contains classes with stripped method bodies, which will cause your application 
to throw obscure Absent Code errors if present on the classpath at runtime (even when running tests).
 Read this FAQ for more details.
 
        <dependency>
            <groupId>org.jboss.spec</groupId>
            <artifactId>jboss-javaee-6.0</artifactId>
            <version>3.0.1.Final</version>
            <type>pom</type>
            <scope>test</scope>
        </dependency>  
      -->
        <dependency>
            <groupId>javax</groupId>
            <artifactId>javaee-api</artifactId>
            <version>6.0</version>
            <scope>provided</scope>
        </dependency>
 
 
        <!-- TEST -->
        <dependency>
            <groupId>org.jboss.arquillian.junit</groupId>
            <artifactId>arquillian-junit-container</artifactId>
            <version>1.0.2.Final</version>
            <scope>test</scope>
        </dependency>
 
 
...
 <profile>
            <id>arquillian-jbossas-managed-target</id>
            <dependencies>
                <dependency>
                    <groupId>org.jboss.spec</groupId>
                    <artifactId>jboss-javaee-6.0</artifactId>
                    <version>3.0.1.Final</version>
                    <type>pom</type>
                    <scope>test</scope>
                </dependency>  
                <dependency>
                    <groupId>org.jboss.as</groupId>
                    <artifactId>jboss-as-arquillian-container-managed</artifactId>
                    <version>7.1.1.Final</version>
                    <scope>test</scope>
                </dependency>
                <dependency>
                    <groupId>org.jboss.arquillian.protocol</groupId>
                    <artifactId>arquillian-protocol-servlet</artifactId>
                    <scope>test</scope>
                </dependency>
            </dependencies>
             <build>
                <plugins>
                    <plugin>
                        <artifactId>maven-dependency-plugin</artifactId>
                        <executions>
                            <execution>
                                <id>unpack</id>
                                <phase>process-test-classes</phase>
                                <goals>
                                    <goal>unpack</goal>
                                </goals>
                                <configuration>
                                    <artifactItems>
                                        <artifactItem>
                                            <groupId>org.jboss.as</groupId>
                                            <artifactId>jboss-as-dist</artifactId>
                                            <version>7.1.1.Final</version>
                                            <type>zip</type>
                                            <overWrite>false</overWrite>
                                            <outputDirectory>target</outputDirectory>
                                        </artifactItem>
                                    </artifactItems>
                                </configuration>
                            </execution>
                        </executions>
                    </plugin>
                </plugins>
            </build> 
        </profile>
 
..

arquillian.xml

<?xml version="1.0" encoding="UTF-8"?>
<arquillian xmlns="http://jboss.org/schema/arquillian"
    xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
    xsi:schemaLocation="
        http://jboss.org/schema/arquillian
        http://jboss.org/schema/arquillian/arquillian_1_0.xsd">
      <container qualifier="arquillian-jbossas-managed-target" default="true">
        <configuration>
            <property name="jbossHome">targetjboss-as-7.1.1.Final</property>
        </configuration>
    </container>
 
</arquillian>

Additional Information
A list of all adapters can be found here: Container adapters

If you get the following error:

2012-03-12 10:46:06 org.jboss.as.arquillian.container.managed.ManagedDeployableContainer startInternal
INFO: Starting container with: ["C:Program FilesJavajdk1.6.0_30binjava", -Xmx512m, -XX:MaxPermSize=128m, -ea, -Djboss.home.dir=C:serwerjboss-as-7.1.0.Final, -Dorg.jboss.boot.log.file=C:serwerjboss-as-7.1.0.Final/standalone/log/boot.log, -Dlogging.configuration=file:C:serwerjboss-as-7.1.0.Final/standalone/configuration/logging.properties, -Djboss.modules.dir=C:serwerjboss-as-7.1.0.Finalmodules, -Djboss.bundles.dir=C:serwerjboss-as-7.1.0.Finalbundles, -jar, C:serwerjboss-as-7.1.0.Finaljboss-modules.jar, -mp, C:serwerjboss-as-7.1.0.Finalmodules, -jaxpmodule, javax.xml.jaxp-provider, org.jboss.as.standalone, -server-config, standalone.xml]
org.apache.maven.surefire.booter.SurefireExecutionException: org.xnio.XnioProvider: Provider org.xnio.nio.NioXnioProvider could not be instantiated: java.lang.NoSuchMethodError: org.jboss.logging.Logger.tracef(Ljava/lang/String;Ljava/lang/Object;)V; nested exception is java.util.ServiceConfigurationError: org.xnio.XnioProvider: Provider org.xnio.nio.NioXnioProvider could not be instantiated: java.lang.NoSuchMethodError: org.jboss.logging.Logger.tracef(Ljava/lang/String;Ljava/lang/Object;)V
java.util.ServiceConfigurationError: org.xnio.XnioProvider: Provider org.xnio.nio.NioXnioProvider could not be instantiated: java.lang.NoSuchMethodError: org.jboss.logging.Logger.tracef(Ljava/lang/String;Ljava/lang/Object;)V
    at java.util.ServiceLoader.fail(ServiceLoader.java:207)
    at java.util.ServiceLoader.access$100(ServiceLoader.java:164)

You need to add the following dependency, because of the referenced org.jboss.ejb3 which has referenced old jboss-logging-spi ::

<dependency>
     <groupId>org.jboss.ejb3</groupId>
     <artifactId>jboss-ejb3-ext-api</artifactId>
     <scope>provided</scope>
</dependency>