I tried both  of these suggestions - throwing an EJBException and calling 
setRollbackOnly on the EJBContext at the end of createFoo(). In both cases a 
TransactionRolledbackLocalException is generated, but the creation of the Foo entity 
bean is NOT rolled back in the db. 

So then I figured it might be something in the way that our mysql was configured. When 
I ran  the mysql admin tool, I found that the table_type (ie., storage engine) comes 
up myisam which does not support transaction rollbacks. Remember that 4.X versions of 
mysql ship with innodb and bdb starage engines which do support transactions. Can this 
be the problem or does JBoss reset the storage engine? I suppose what I'm asking is 
whether there is some required or preferred mysql configuration for transactions or 
whether the JBoss just handles this.

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http://www.jboss.org/index.html?module=bb&op=viewtopic&p=3831990#3831990

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