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Well, as I guessed I was missing something obvious.
In case anyone else has this problem it turns out that this behavior is caused by not having an ejb-jar.xml that has this in it
<ejb-jar> <assembly-descriptor> <interceptor-binding> <ejb-name>*</ejb-name> <interceptor-class>org.jboss.seam.ejb.SeamInterceptor</interceptor-class> </interceptor-binding> </assembly-descriptor> </ejb-jar>