Hibernate version:
2.1.6

How can I handle objects created and saved in a while loop. Is it ok to commit the transaction on every iteration of the while loop? Can I save multiple objects on each iteration, in one transaction?

Thanks

Hibernate does nothing special or extra in terms of transaction handling.
So there is no limit imposed thus you can structure your code to do a full transaction cycle per-iteration or do a subset of the data or all of the data in a single transaction. Which way you go depends on the use case requirements.