2012-04-20 11:14:32.617:WARN:oejx.XmlParser:FATAL@file:/C:/Users/***/workspace/Test/WEB-INF/web.xml line:1 col:7 : org.xml.sax.SAXParseException: The processing instruction target matching "[xX][mM][lL]" is not allowed.
You Log says, that you web.xml is malformed. Line 1, colum 7. It may be a UTF-8 Byte-Order-Marker
Try to verify, that your xml is wellformed and does not have a BOM. Java doesn't use BOMs.