We are using OJB 1.0.0 and JBoss 3.2.3 and got the simlar problem in first 
round. We got that error inside a transaction block. But after looking into the 
code we found it related to the errors caused by using the JDBC Connection 
outside the OJB persist code section. 

       if(queryType.equalsIgnoreCase("select")){
            rs = stmt.executeQuery(sqlString);
        }
        else
            stmt.execute(sqlString);

To run insert query with executeQuery(sqlString) will cause exceptions and OJB 
is still holding the connection but EJB layer is try to roll back. When we fix 
the code as above, we can get through without modifiy the jboss configuration. 

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http://www.jboss.org/index.html?module=bb&op=viewtopic&p=3884610#3884610

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