I'm facing a similar problem with child entities not being deleted with their parents.
The exception I see is "javax.persistence.EntityNotFoundException: deleted entity
passed to persist", and it looks like the entity manager is trying to persist the
child entities with null references to the parent. I have CascadeType.ALL set on that
relationship.
I'd be very disappointed to learn that manual deletion of child entities or
database-level cascades were necessary, as the whole point of the JPA cascade
functionality is to avoid that. But, I don't have a better answer yet. (BTW, I'm
also on jboss 4.0.5 and postgres 8.1; it's bizarre that you're hitting a
constraint violation and I'm not even getting that far).
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