CRAP...now I remember the issue. The problem you were seeing was that in the old code (now 4.0.5) support for handling a RuntimeException in an non specified transaction context had to be done via a SystemProperty. Being that you had not set this, it didn't work. However, I was never happy about having to set something like that to get that behavior. This requirement is removed in the latest code so it's best to go with that anyway. View the original post : http://www.jboss.com/index.html?module=bb&op=viewtopic&p=4004233#... Reply to the post : http://www.jboss.com/index.html?module=bb&op=posting&mode=reply&a...