XFireConfigurableServlet does not seem to be able to read the services.xml file from a non expanded war file. As soon as I expand the war file everything runs as expected.
I have the services.xml file place in WEB-INF/META-INF/xfire/services.xml. My web.xml file looks like the following. Notice I am not specifying where the services.xml file is located. Although that does not seem to matter either way.