I realize this thread is old, but having spent a week myself trying to get 
around this, I wanted to share.

I have been doing migration work on an application with about a dozen EJBs.  
All of the transaction settings are NotSupported, and with a standard 
local-tx-datasource I was running into chained mode errors.  After actually 
reading the 4.0 app server guide, I noticed the "no-tx-datasource" type.  I 
switched the datasource to this, and everything started working again.

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