Yes, there were two problems.  I had to put this in my datasource:

<use-java-context>false</use-java-context> 


It was correctly bound to java:/TransactionManager.  

But I couldn't look it up because I had some Jboss jars bundled in with my 
application.  When I removed those it worked.  There was classloader issues 
with JNDI in general.  Look in your application for conflicting jars and I bet 
you'll find some.

Good luck

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