No, AFAIK, your datasource won't use the connection pool. You now have two, or perhaps three, datasources defined, which are accessible from different JNDI names.
1) Out of the box, there is a datasource called
java:DefaultDS that is configured in deploy/hsqldb-ds.xml.
2) The config file you specified defines a java:PooledDS, which points to your database directly, hence the
JDBC URL you defined.
3) You said that you had a java:MySqlDS defined as well.
Did you remove the default datasource (hsqldb-ds.xml)? If so, did you point all the existing services to point to your MySqlDS datasource? How did you configure your MySqlDS?
I'd suggest removing the MySqlDS (however you configured it) and the deploy/hsqldb-ds.xml. Then you can change the JNDI name on your c3p0 configuration to java:DefaultDS. Then you'll have to make all your code just call java:DefaultDS (or better yet you can use the ENC to create a local namespace for your app).
Side note: Those of you who have JBoss in Action, we talk about how to configure the default datasource in section 15.5.