Here is what I did.
I downloaded the Geronimo Source from
http://www.apache.org/dyn/closer.cgi/geronimo/1.0/geronimo-1.0-src.zip.
Went to
geronimo-1.0-src/modules/transaction/src/java/org/apache/geronimo/transaction/context
And edited the file like so(Here is the output from a diff -P):
Index: InheritableTransactionContext.java
307c307,308
< status != Status.STATUS_ROLLING_BACK) {
---
> status != Status.STATUS_ROLLING_BACK &&
> status != Status.STATUS_NO_TRANSACTION) {
--
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