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Can you right click and select your process Properties from the processes tab. Under Advanced change the transaction from Required New to Not Supported and see if that helps.
Let me know,
It worked magically! Thanks Jasmin.
Just wondering, was this a SQL Server issue? If I change the database to Oracle 9, will I still need to do the "Not Supported" trick?
Yes. I had the same problem with WebSphere\Oracle.
I'm not sure if it's a combination of appserver/db. I'm trying to get more information on it.