Don't you specify the schema name in the datasource that you have configured for the persistence.xml?
Yes you do, but that does not tell hibernate to prepend all the queries with the schema name.
I have figured out how to make it prepend the schema to table names. My problem was my xml file was not named orm.xml exactally..i had oracle.orm.xml. didn't know it was that picky. So that fixed that problem. But now, it is not prepending the schema name to the sequences that I have. I believe this is a documented bug in hibernate, but I can't find it...
I still don't think this solution is a very good one. There needs to be a way to configure this outside the deployable application. If anyone has accomplished this, i'd love to hear how.