Hibernate version:
3.1 rc 1, Hibernate annotations 3.1b6

Name and version of the database you are using:
Oracle 10g

System.setProperty(Environment.HBM2DDL_AUTO, "update");

When I get a session factory, and Hibernate runs schema update (creating tables and constraints,) it is ignoring any @Index annotations that I've provided in my classes. No indexes get created. Am I doing something wrong, or is this a bug?

I looked at Configuration.java, and found a block of code that looks like it should be generating the indexes commented out.

/*//broken, 'cos we don't generate these with names in SchemaExport^M
subIter = table.getIndexIterator();^M
while ( subIter.hasNext() ) {^M
Index index = (Index) subIter.next();^M
...

Should I file a bug about this?

no, but a fix that makes the comment obsolete will be interesting.

I copied the chunk of code that looks like it should be creating indexes when running SchemaExport into the SchemaUpdate section, but table.getIndexIterator() returns an empty iterator. Any suggestions on where to head next? I never use SchemaExport. Does index creation work properly there? Has anyone tested it with @Index annotations?