Found it, sort of.  The SELECT FOR UPDATE was being caused by he DB (Postgres). 
It uses a SELECT for UPDATE on Referential Integrity (RI) links.  The has the 
side effect of an insert on (say) a transaction table to lock all related 
tables. The side effect of that is a SEVERE drop in throughput (only one at a 
time).

Solution?  Upgrade to Postgres 8.1.  It handles locking for RI differeht by 
introducing a UPDATE FOR SHARE which uses a shared lock rather than an 
exclusive one.

As for deadlocking - still it is REPEATABLE_READ that is the culprit.  I'd 
recommend that the default is change away from this to READ_COMMITTED.  Much 
safer.

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