Actually this combination worked for me on EAP 7 version of JBOSS 7.1.5 servers.
This way I was able to load jsf1.2 jars from my WEB-INF/lib folder rather than what was supplied by JBOSS 7.1.5.
I had a EAR file which had the WAR file.
Web.xml:
<context-param>
<param-name>org.jboss.jbossfaces.WAR_BUNDLES_JSF_IMPL</param-name>
<param-value>true</param-value>
</context-param>
In ear META-INF/jboss-deployment-structure.xml
<?xml version="1.0" encoding="UTF-8"?>
<jboss-deployment-structure>
<ear-subdeployments-isolated>true</ear-subdeployments-isolated>
<deployment>
<exclusions>
<module name="javax.faces.api" slot="main" />
<module name="com.sun.jsf-impl" slot="main" />
</exclusions>
</deployment>
<sub-deployment name="yourwarfilename.war">
<exclusions>
<module name="javax.faces.api" slot="main" />
<module name="com.sun.jsf-impl" slot="main" />
</exclusions>
</sub-deployment>
</jboss-deployment-structure>