I noticed that we were missing steps on enabling XA transactions for MS SQL. 
I followed the official install steps
(http://msdn.microsoft.com/en-us/library/aa342335(SQL.90).aspx) and still
having the same error.  I am now using the MSSQL JDBC 1.1 driver.

Should the profiler show the use of the XA procedures?  Do I need to set the
pool-xa-wrapper-class in <inline-jdbc>? 

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