Hi,
It looks like you are using the HSQLDB dialect with H2, and this
dialect tries to query the table SYSTEM_SEQUENCES. Most of the time,
the HSQLDB dialect works fine with H2, but it seems in this case you
need to use the H2 dialect (or another one, for example the PostgreSQL
dialect).
The latest H2 dialect for Hibernate is included in the H2 source code,
but the class is renamed to .java.txt - see
src/tools/org/hibernate/dialect/H2Dialect.java.txt. The H2 dialect
that comes with Hibernate contains a bug (it only affects you when
using BOOLEAN columns).
Regards,
Thomas