According to the EJB3 in Action book, passivation/activation (which involves 
serialization/deserialization) requires a lot of memory and CPU cycles.

“when you store large objects in your instance variables, the server spends a 
lot of CPU cycles and memory in the serialization and deserialization process"
from pg. 487

seeing that Seam makes extensive use of SFSB's in the solutions for many 
conversationally scoped use cases, what is the recommendation for using 
"transient" keyword for instance variables to improve performance?

There is not one reference to the keyword "transient" in the Seam 2.0.0.GA 
reference pdf...

Haven't checked the distro example code.

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