I am trying to set the dialect property. In the new Java Persistence example Chapter 2, it suggests setting it in the hibernate.cfg.xml file (Listing 2.4, pg. 52). When I try this, it fails, complaining the property isn't set. When I put the property in the hibernate.properties file, everything works. In Section 3.4 of http://www.hibernate.org/hib_docs/v3/re ... ation.html, it suggests that some properties are "system-level" and, therefore, not settable in hibernate.cfg.xml. Is hibernate.dialect one of the system-level properties? If so, is Listing 2.4 in error?

No it is not a system propery (you probably never need any of those). Download the book code and compare it to yours.