This is crazy. We moved the code outside of the session bean and all works just fine.
Is there a rule that says:
If you create a ResultSet inside a session bean that you cannot return to a non-session bean caller?
If someone answers this question 'yes' then: How is it that I have been doing this exact thing for a long time with no problems. The problem only surfaced when I moved from 4.0.5 to 5.1.0. ??????
Restating: this is not an EJB3 resultset, just a simple JDBC Resultset. All indications are that when the session bean method exits something is closing the ResultSet.