Wolf-Dieter Fink [http://community.jboss.org/people/wdfink] created the 
discussion

"Re: Working around transaction timeouts"

To view the discussion, visit: http://community.jboss.org/message/562103#562103

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Yes, you are right.
In your case the clients transaction will be suspended and if the new 
transaction will take more time than the clients-Tx-timeout the result is
that your (inner) Tx will be successful commited and the outer Tx will be 
rolled back.
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