Hibernate Dialect must be explicitly set

SEAM 1.2.1.GA
JBOSS 4.0.5.GA

Trying to exec a DAO method in a Seam-gen'd Seam app using JSF (MyFaces xhtml), SFSB, DAO, and Entity bean.

getting following stack trace when I click the commandLink on JSF to exec the action method on the SFSB:

Caused by: org.hibernate.HibernateException: Hibernate Dialect must be explicitly set
  | 	at org.hibernate.dialect.DialectFactory.determineDialect(DialectFactory.java:57)
  | 	at org.hibernate.dialect.DialectFactory.buildDialect(DialectFactory.java:39)
  | 	at org.hibernate.cfg.SettingsFactory.determineDialect(SettingsFactory.java:409)
  | 	at org.hibernate.cfg.SettingsFactory.buildSettings(SettingsFactory.java:119)
  | 	at org.hibernate.cfg.Configuration.buildSettings(Configuration.java:1933)
  | 	at org.hibernate.cfg.Configuration.buildSessionFactory(Configuration.java:1216)
  | 	at org.hibernate.ejb.Ejb3Configuration.buildEntityManagerFactory(Ejb3Configuration.java:691)

I added the line "hibernate.dialect" line to the persistence.xml below and still getting the same exception after restarting the server and deploying app.  I viewed the persistence.xml file in the JAR's meta-inf folder and it matches the one below.  Why is it not reading/picking up the new version??? thx.

<?xml version="1.0" encoding="UTF-8"?>
  | <!-- Persistence deployment descriptor for dev profile -->
  | <persistence xmlns="http://java.sun.com/xml/ns/persistence" 
  |              xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
  |              xsi:schemaLocation="http://java.sun.com/xml/ns/persistence http://java.sun.com/xml/ns/persistence/persistence_1_0.xsd" 
  |              version="1.0">
  |              
  |    <persistence-unit name="SHIMS">
  |       <provider>org.hibernate.ejb.HibernatePersistence</provider>
  |       <jta-data-source>java:/SHIMSDatasource</jta-data-source>
  |       
  |       <properties>
  |       	 <!-- commented hibernate auto validate due to errors upon deployment (validates the db structure at start-up) -->
  |          <!-- <property name="hibernate.hbm2ddl.auto" value="validate"/>  -->
  | 		 <!-- AS 09-24-07 - added hibernate.dialect property due to error during runtime stating "Hibernate Dialect must be explicitly set" --> 
  | 		 <property name="hibernate.dialect" value="org.hibernate.dialect.SQLServerDialect"/>		          
  |       

 <property name="hibernate.hbm2ddl.auto" value="create-drop"/>   

   <property name="hibernate.cache.use_query_cache" value="true"/>
  |          <property name="hibernate.show_sql" value="true"/>
  |          <property name="jboss.entity.manager.factory.jndi.name" value="java:/SHIMSEntityManagerFactory"/>
  |          <property name="hibernate.default_catalog" value="boSHIMS"/>
  |          <property name="hibernate.default_schema" value=""/>
  |       </properties>
  |       
  |    </persistence-unit>
  |     
  | </persistence>

SHIMSDatasource.xml:

<?xml version="1.0" encoding="UTF-8"?>
  | <datasources>
  |    
  |    <local-tx-datasource>
  |       <jndi-name>SHIMSDatasource</jndi-name>
  |       <connection-url>jdbc:sqlserver://CORG0DV01:1433;databaseName=boSHIMS</connection-url>
  |       <driver-class>com.microsoft.sqlserver.jdbc.SQLServerDriver</driver-class>
  |       <user-name>_AppUser_JavaTestAcct</user-name>
  |       <password>JavaTestAcct</password>
  | <!-- 
  |       <exception-sorter-class-name>
  |          org.jboss.resource.adapter.jdbc.vendor.MySQLExceptionSorter
  |       </exception-sorter-class-name>
  |       <metadata>
  |          <type-mapping>mySQL</type-mapping>
  |       </metadata>
  | -->
  |    </local-tx-datasource>
  |     
  | </datasources>

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