Are you using EJB? Why aren't you setting your transaction component? Take a look at the JEE5 example on how to set it up.
Seam 1.1 is very old. Please use 2 or 1.2 at a pinch.
I am using seam 1.2.
Can you elaborate on the the point you are making. what is the solution. I am not using EJB but rather seam pojo. Where is the JEE5 example?
So, update your namepsaces.
Use seam-gen to set up a correct project and compare it to your current one.