Sorry I should be more specific : The Exception output should read
java.sql.SQLException [Microsoft][SQLServer 2000 Driver for JDBC]Invalid operation ....
I have just hit this same problem, did you ever resolve it? any hints would be great (i'm using RC2)
i had the same problem previously. i fixed it by adding "SelectMethod=cursor" so the entire line reads:
<config-property name="XADataSourceProperties" type="java.lang.String">ServerName=192.168.123.222:1433;SelectMethod=cursor</config-property>
This line should be in your jca configuration file although I'm using an XA connection it should work the same with yours.