jboss7 comes with h2 already installed and setup. For hsqldb, just take h2 setup as example.
Following steps helps to setup hsqldb with jboss7.
A. create new jboss7 module: hsqldb module
first create directory $JBOSS_HOME/modules/org/hsqldb/main
cd $JBOSS_HOME mkdir -p modules/org/hsqldb/main
create into main directory following module.xml file (assuming hsqldb jar is hsqldb-x.x.x.jar)
B. setup hsqldb datasource
add hsql driver by editing $JBOSS_HOME/standalone/configuration/standalone.xml (locate drivers in standalone.xml file)
finally add hsqldb datasource in $JBOSS_HOME/standalone/configuration/standalone.xml (locate datasources in the file) we consider a file hsqldb database created into /home/hsqldb/data/witrHsqldb