I am refering to two tables both in different databases in my stored procedure. hibernate.connection.url is pointing to the database which has the stored procedure. When I execute the sp directly in the database it is executing without any error, but when I execute it through my application it throws following error
19:37:13,109 WARN [JDBCExceptionReporter] SQL Error: 7391, SQLState: S1000
19:37:13,109 ERROR [JDBCExceptionReporter] The operation could not be performed because the OLE DB provider 'SQLOLEDB' was unable to begin a distributed transac
tion.
19:37:13,689 ERROR [STDERR] Hibernate Exceptioncould not execute native bulk manipulation query
19:37:13,689 ERROR [STDERR] org.hibernate.exception.GenericJDBCException: could not execute native bulk manipulation query
at org.hibernate.exception.SQLStateConverter.handledNonSpecificException(SQLStateConverter.java:103)
at org.hibernate.exception.SQLStateConverter.convert(SQLStateConverter.java:91)
at org.hibernate.exception.JDBCExceptionHelper.convert(JDBCExceptionHelper.java:43)
at org.hibernate.engine.query.NativeSQLQueryPlan.performExecuteUpdate(NativeSQLQueryPlan.java:174)
at org.hibernate.impl.SessionImpl.executeNativeUpdate(SessionImpl.java:1163)
at org.hibernate.impl.SQLQueryImpl.executeUpdate(SQLQueryImpl.java:302)
at com.ge.lease.dao.services.TransactionListingService.rDRLoad(TransactionListingService.java:379)
at com.ge.lease.ajax.dwr.ltb.TransactionListingDWR.rDRLoad(TransactionListingDWR.java:72)
at sun.reflect.NativeMethodAccessorImpl.invoke0(Native Method)
at sun.reflect.NativeMethodAccessorImpl.invoke(NativeMethodAccessorImpl.java:39)
at sun.reflect.DelegatingMethodAccessorImpl.invoke(DelegatingMethodAccessorImpl.java:25)
at java.lang.reflect.Method.invoke(Method.java:324)
at uk.ltd.getahead.dwr.impl.ExecuteQuery.execute(ExecuteQuery.java:239)
at uk.ltd.getahead.dwr.impl.DefaultExecProcessor.handle(DefaultExecProcessor.java:48)

My application is in Spring framework, hibernate and JBoss-4.0.5.GA AS.

following is the entry in hibernate-configuration

<property name="hibernate.connection.driver_class">net.sourceforge.jtds.jdbc.Driver</property>
<property name="hibernate.dialect">org.hibernate.dialect.SQLServerDialect</property>
<property name="hibernate.connection.username">--</property>
<property name="hibernate.connection.password">--</property>
<property name="hibernate.cache.provider_class">org.hibernate.cache.EhCacheProvider</property>
<property name="hibernate.cache.provider_configuration_file_resource_path">ehcache.xml</property>
<property name="hibernate.jdbc.batch_size">40</property>
<property name="hibernate.cache.use_second_level_cache">false</property>
<property name="hibernate.c3p0.min_size">5</property>
<property name="hibernate.c3p0.max_size">100</property>
<property name="hibernate.c3p0.timeout">20000</property>
<property name="hibernate.c3p0.max_statements">0</property>
<property name="hibernate.c3p0.acquire_increment">5</property>
<property name="hibernate.cglib.use_reflection_optimizer">true</property>
<property name="show_sql">false</property>
<property name="myeclipse.connection.profile">--</property>

As i understand, your choose incorrect driver class, wich doesn't support distributed XA-transactions. (You need distributed transaction to work with different resources, in your case, two different databases). By the way, why you trying to use plain JDBC driver and connection, if you have full-functional application server? You must use JTA and DataSource on app server, wich has transaction manager used to manage distributed transactions. Look what JDTS JDBC Driver Documentation (http://jtds.sourceforge.net/faq.html#driverImplementation) says: