To answer myself, the issue seems to be that I was attempting to re-use an XA data source I had used for a different database. I used the example from the doc directory and this fixed my issue. As a side note, I thought the destination manager would have already been configured, however this is not the case. The Wiki doesn't explicitly say to, but I'm assuming the destination manager should have the same data source as the messages. So I modified the hsqldb-jdbc-state-service.xml to also point to the new data source. Hopefully this helps someone else out!