I have solved my problem,  It turns out that I was not wrapping my Hibernate 
sessions in UserTransactions.  I should have been using a local-tx connection 
instead of an XA connection.  Much thanks to Weston Price for helping me out on 
this one.

This may be useful for anyone who does not have a good grasp of JTA 
UserTransactions like I didn't.  This deals with JDBC instead of Hibernate but 
the same logic applies
http://jboss.org/index.html?module=bb&op=viewtopic&p=3969854

Here is another Hibernate specific resource.
http://www.hibernate.org/42.html

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