Could not connect to RTC client from a JAVA application deployed as a servlet on WAS v8.0

Hi Nick,
I am getting the same error "Badly configured client. Missing a foundation component tag" as being discussed at:
I am posting a new question because there is limit on number of chars in comments which could not accommodate my error log.
I am trying to connect to RTC using WAS v8.0. I tried this on WAS v8.5 also. The code works fine as a standalone JAVA application.
Error Log:
[7/1/13 16:12:03:173 EDT] 000000a6 StandaloneFil W com.ibm.team.repository.common.internal.util.StandaloneExtensionRegistry getBundleLocalization Could not open META-INF/MANIFEST.MF for bundle: jar:file:/C:/WASv85/IBM/WebSphere/AppServer/lib/pc-appext.jar!/plugin.xml
[7/1/13 16:12:03:184 EDT] 000000a6 StandaloneFil W com.ibm.team.repository.common.internal.util.StandaloneExtensionRegistry getBundleLocalization Could not open META-INF/MANIFEST.MF for bundle: jar:file:/C:/WASv85/IBM/WebSphere/AppServer/lib/rrd-appext.jar!/plugin.xml
[7/1/13 16:12:04:969 EDT] 000000a6 SystemErr R com.ibm.team.repository.common.TeamRepositoryException: Badly configured client. Missing a foundation component tag.
[7/1/13 16:12:04:969 EDT] 000000a6 SystemErr R at com.ibm.team.repository.client.internal.TeamRepository.checkServerVersionMatches(TeamRepository.java:1582)
[7/1/13 16:12:04:970 EDT] 000000a6 SystemErr R at com.ibm.team.repository.client.internal.TeamRepository.internalLogin(TeamRepository.java:1444)
[7/1/13 16:12:04:970 EDT] 000000a6 SystemErr R at com.ibm.team.repository.client.internal.TeamRepository.login(TeamRepository.java:617)
[7/1/13 16:12:04:970 EDT] 000000a6 SystemErr R at com.cognos.rtc.service.impl.RTCRepositoryServiceImpl.login(RTCRepositoryServiceImpl.java:60)
[7/1/13 16:12:04:970 EDT] 000000a6 SystemErr R at com.cognos.rtc.util.ChangeConfigurationManager.initWorkSpace(ChangeConfigurationManager.java:123)
[7/1/13 16:12:04:970 EDT] 000000a6 SystemErr R at com.ibm.ALCMRTCConnection.ALCMRTCConnectionServlet.changeConfigManager(ALCMRTCConnectionServlet.java:78)
[7/1/13 16:12:04:970 EDT] 000000a6 SystemErr R at com.ibm.ALCMRTCConnection.ALCMRTCConnectionServlet.doGet(ALCMRTCConnectionServlet.java:43)
[7/1/13 16:12:04:970 EDT] 000000a6 SystemErr R at javax.servlet.http.HttpServlet.service(HttpServlet.java:575)
[7/1/13 16:12:04:970 EDT] 000000a6 SystemErr R at javax.servlet.http.HttpServlet.service(HttpServlet.java:668)
[7/1/13 16:12:04:971 EDT] 000000a6 SystemErr R at com.ibm.ws.webcontainer.servlet.ServletWrapper.service(ServletWrapper.java:1219)
[7/1/13 16:12:04:971 EDT] 000000a6 SystemErr R at com.ibm.ws.webcontainer.servlet.ServletWrapper.handleRequest(ServletWrapper.java:774)
[7/1/13 16:12:04:971 EDT] 000000a6 SystemErr R at com.ibm.ws.webcontainer.servlet.ServletWrapper.handleRequest(ServletWrapper.java:456)
[7/1/13 16:12:04:971 EDT] 000000a6 SystemErr R at com.ibm.ws.webcontainer.servlet.ServletWrapperImpl.handleRequest(ServletWrapperImpl.java:178)
[7/1/13 16:12:04:971 EDT] 000000a6 SystemErr R at com.ibm.ws.webcontainer.filter.WebAppFilterManager.invokeFilters(WebAppFilterManager.java:1027)
[7/1/13 16:12:04:971 EDT] 000000a6 SystemErr R at com.ibm.ws.webcontainer.webapp.WebApp.handleRequest(WebApp.java:3703)
[7/1/13 16:12:04:971 EDT] 000000a6 SystemErr R at com.ibm.ws.webcontainer.webapp.WebGroup.handleRequest(WebGroup.java:304)
[7/1/13 16:12:04:971 EDT] 000000a6 SystemErr R at com.ibm.ws.webcontainer.WebContainer.handleRequest(WebContainer.java:962)
[7/1/13 16:12:04:971 EDT] 000000a6 SystemErr R at com.ibm.ws.webcontainer.WSWebContainer.handleRequest(WSWebContainer.java:1662)
[7/1/13 16:12:04:971 EDT] 000000a6 SystemErr R at com.ibm.ws.webcontainer.channel.WCChannelLink.ready(WCChannelLink.java:195)
[7/1/13 16:12:04:972 EDT] 000000a6 SystemErr R at com.ibm.ws.http.channel.inbound.impl.HttpInboundLink.handleDiscrimination(HttpInboundLink.java:458)
[7/1/13 16:12:04:972 EDT] 000000a6 SystemErr R at com.ibm.ws.http.channel.inbound.impl.HttpInboundLink.handleNewRequest(HttpInboundLink.java:522)
[7/1/13 16:12:04:972 EDT] 000000a6 SystemErr R at com.ibm.ws.http.channel.inbound.impl.HttpInboundLink.processRequest(HttpInboundLink.java:311)
[7/1/13 16:12:04:972 EDT] 000000a6 SystemErr R at com.ibm.ws.http.channel.inbound.impl.HttpInboundLink.ready(HttpInboundLink.java:282)
[7/1/13 16:12:04:972 EDT] 000000a6 SystemErr R at com.ibm.ws.tcp.channel.impl.NewConnectionInitialReadCallback.sendToDiscriminators(NewConnectionInitialReadCallback.java:214)
[7/1/13 16:12:04:972 EDT] 000000a6 SystemErr R at com.ibm.ws.tcp.channel.impl.NewConnectionInitialReadCallback.complete(NewConnectionInitialReadCallback.java:113)
[7/1/13 16:12:04:972 EDT] 000000a6 SystemErr R at com.ibm.ws.tcp.channel.impl.AioReadCompletionListener.futureCompleted(AioReadCompletionListener.java:165)
[7/1/13 16:12:04:972 EDT] 000000a6 SystemErr R at com.ibm.io.async.AbstractAsyncFuture.invokeCallback(AbstractAsyncFuture.java:217)
[7/1/13 16:12:04:972 EDT] 000000a6 SystemErr R at com.ibm.io.async.AsyncChannelFuture.fireCompletionActions(AsyncChannelFuture.java:161)
[7/1/13 16:12:04:973 EDT] 000000a6 SystemErr R at com.ibm.io.async.AsyncFuture.completed(AsyncFuture.java:138)
[7/1/13 16:12:04:973 EDT] 000000a6 SystemErr R at com.ibm.io.async.ResultHandler.complete(ResultHandler.java:204)
[7/1/13 16:12:04:973 EDT] 000000a6 SystemErr R at com.ibm.io.async.ResultHandler.runEventProcessingLoop(ResultHandler.java:775)
[7/1/13 16:12:04:973 EDT] 000000a6 SystemErr R at com.ibm.io.async.ResultHandler$2.run(ResultHandler.java:905)
[7/1/13 16:12:04:973 EDT] 000000a6 SystemErr R at com.ibm.ws.util.ThreadPool$Worker.run(ThreadPool.java:1783)
I have tried Stephen's answer and made the Classloader mode as: PARENT_LAST and WAR classloader policy as: APPLICATION and
also removed the javax.servlet jar from my build path.
But after changing the WAR Classloader policy to APPLICATION, I stumbled up on another error:
Error 500: javax.servlet.ServletException: SRVE0207E: Uncaught initialization exception created by servlet
As you can see the first line in error log says that it could not open the MANIFEST file. Is it something to do with it?
Or should I package the RTC Java Client Library as isolated shared library as Martha suggested.
I am pretty new to IBM and Jazz applications. Please let me know the possible solutions. Any help would be greatly appreciated.
Thanks in advance.