I'm trying to upgrade to 4.0.0RC1. The first test I did failed because of transactions hanging. Basically, all I have is a stateless local session bean that uses 2 local entity beans to do 2 inserts into the database. All the methods have "transaction=required". I'm using XDoclet 1.2.0 to generate all the deployment descriptors. when I run my test jboss either fails to return from the create() method of the first local entity bean or fails to enter the create method of the second local entity bean. BTW, all this works fine in jboss-3.2.5.