The Seam-managed persistence context caches entities in the conversation context (this is what you want to happen). To see the changes made by some other transaction, you need to end the conversation.
you are right my problem is with the seam conversation management.
Gavin, isn't there anyway to trigger global events? I mean something like
in the Application scope and capture it in the same way @Observer methods do? (I am using Seam 1.2.1.GA)