The 1.7 clearspace webservices client jar contains files like commons-logging.properties and rome.properties that cause a web application in Resin (at least) to use those for configuartion of logging and RSS production isntead of the ones inside the web applications classes directory. When I removed these files, the host application went back to normal. I believe that the jive-clearspacex-webservices.jar has too many files in it to begin with.
Yes it does have a lot of files. In the earlier versions I would rip all those I didn't need, but it was was a bit of a maintenance/testing headache.
You are probably ok if you keep only the following:
com.jivesoftware.community.webservices.* (minus server and xmlrpc directories)
Anything subclassing Exception
Separately, is it really necessary to require all those jars to use the webservices?
You will need to include all of the client jars that XFire client will need.