Thanks to everyone who responded to this. It turned out that the issue was 
with the conversion of unicode strings - when I added the option into the 
jdbc connection string, it runs like a charm. So, now, my connection 
string includes the option of SendStringParametersAsUnicode=false. 

A more detailed explanation of the problem and the solution is at 
http://www.hibernate.org/74.html#A15



<jdbc-connection-descriptor
                jcd-alias="pascrics1"
                platform="MsSQLServer"
                jdbc-level="2.0"
                driver="com.microsoft.jdbc.sqlserver.SQLServerDriver"
                protocol="jdbc"
 
subprotocol="microsoft:sqlserver://pascrics1:1433;DatabaseName=Diversified;SendStringParametersAsUnicode=false;SelectMethod=cursor"
                username="testuser"
                password="testuser%123"
                eager-release="false"
                batch-mode="false"
                useAutoCommit="1"
                ignoreAutoCommitExceptions="false" >
       <connection-pool maxActive="21"  validationQuery="" />
       <sequence-manager 
className="org.apache.ojb.broker.util.sequence.SequenceManagerNativeImpl" 
/>
   </jdbc-connection-descriptor> 


Regards,

Alex Kotchnev
Developer / Systems Analyst
Diversified Information Technologies

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