The way the Hibernate TreeCacheProvider uses the TreeCache is broken (or, in 
other words, not optimal), and has been changed. The new code will be available 
as part of Hibernate 3 final. The integration code will be beta though, and 
will be final in one of the subsequent Hibernate versions.
The main reason is the mismatch between H's assumption of optimistic locking 
and JBossCache's pessimistic locking.
The new Hibernate TreeCacheProvider will minimize the locking exceptions, but 
not completely remove them: only the JBossCache version implementing optimistic 
locking will get rid of them completely, this is planned for JBossCache 1.3 or 
1.4.

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