Failure to compile the generated BPEL classes for BPEL process..

 [02:05:56 PM] Error deploying archive .jar to partition "default" on server soa_server1 [http://local:8001]
[02:05:56 PM] HTTP error code returned [500]
[02:05:56 PM] Error message from server:
There was an error deploying the composite on soa_server1: Error occurred during deployment of component: to service engine: implementation.bpel, for composite: : ORABPEL-01005

Failed to compile bpel generated classes.
failure to compile the generated BPEL classes for BPEL process "" of composite "default/!1.0*soa_353497d7-2855-4de9-8ecc-62fe5c5e039b"
The class path setting is incorrect.
Ensure that the class path is set correctly. If this happens on the server side, verify that the custom classes or jars which this BPEL process is depending on are deployed correctly. Also verify that the run time is using the same release/version.
.

[02:05:56 PM] Check server log for more details.
[02:05:56 PM] Error deploying archive .jar to partition "default" on server soa_server1 [http://local:8001]
[02:05:56 PM] ####  Deployment incomplete.  ####
[02:05:56 PM] Error deploying archive file:/C://////deploy/.jar
 (oracle.tip.tools.ide.fabric.deploy.common.SOARemoteDeployer)

In my case 2nd option saved problems..

http://download.oracle.com/docs/cd/E17904_01/integration.1111/e10224/bp_java.htm#CHDFFEFB

13.3 Adding Custom Classes and JAR Files

You can add custom classes and JAR files to a SOA composite application. A SOA extension library for adding extension classes and JARs to a SOA composite application is available in the $ORACLE_HOME/soa/modules/oracle.soa.ext_11.1.1 directory. For Oracle JDeveloper, custom classes and JARs are added to theapplication_name/project/sca-inf/lib directory.