Thanks again. I tried requires new tx but it did not work. Let me try not supported and get back to you. Hoping this issue will not require us to migrate to ejb 3 as it will be a total overhaul.
This means that the annotation on the ejbPassivate method is being ignored. Can you find out whether there is still a transaction on the thread when ejbPassivate runs (lookup UserTransaction and call getStatus() on it).