1. Does using XA instead of local transactions have any significant performance 
penalty? 

Almost always this is the case. Reasons for this are varied, but at the very 
least, the 2PC protocol always adds overhead. This is one of those times where 
you have to ask yourself...'Do I really, really, really need XA?' Typical XA 
scenarios are JMS, or as you laid out mutliple DB access in a single 
transaction. 

2) is there anything wrong with deploying database "A" twice to JBoss, once as 
a <local-tx-datasource> (for the 95% of cases) and once as an <xa-datasource> 
(for the 5% of cases)?

Not at all. While this is not a typical use case (it's usually either/or), 
there is nothing wrong with this and given your requirements, seems to make the 
most sense. 



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