Hi !
Try putting "requires new" as the the trans-attribute for the method3.
There might be a problem of concurrency of same txn context being used twice(that
is assuming the rest of ur code is bug free and there is no database prob).
If that doesn't work, comment out the call for s3-m3 and see if s2-m2 is working fine.
If it does then it is definitely a txn context prob.
rgds
Abhishek
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