When you configure activemq in the Spring XML file you should also configure connectionFactory, transcated etc.
Basically what you have in the jms bean should be on the activemq bean instead.
jms bean can then be removed.
The activemq:topic endpoint is disovered by Camel and it will look for a component with the name activemq and find this bean in the Spring XML file.
jms is not a special name as such, you could name it webspheremq or what you like.
But again you should combine all the AMQ configuration in the same spring bean = the activemq bean.
In addition to what davsclaus wrote take a read at the Apache Camel docs at http://camel.apache.org/transactional-client.html under Camel 1.x - JMS Sample you'll see that the ActiveMQComponent is where the transactional configuration is done. This might help.
You were absolutely correct. I missed this important piece of configuration and ran in to trouble.
Thanks again, I always got satisfactory answers from fuse forum.
I appreciate a lot for your quick responses.