ALWAYS TELL US WHAT JBOSS VERSION YOU ARE USING!
Always close all your connections when you are done with them. Pre 3.0 rc1, this means in a finally block in the same method you got the connection. In 3.0 rc1 and later, you can hold connections over method boundaries, but you are still responsible for closing them when you are done.
I apologize. It's 3.0RC1. I am closing them and the problem stated above still exists.
What exactly is the failure? Can you show the actual code and stack trace? Are you getting a connection before the call to the inner session bean? If so rc1 will object with an "associate connection not supported" type message, and you should upgrade to rc2 and the new Local jdbc wrapper.