diff --git a/config/alfresco/application-context-core.xml b/config/alfresco/application-context-core.xml
index fc0670ff70..ddac5f146c 100644
--- a/config/alfresco/application-context-core.xml
+++ b/config/alfresco/application-context-core.xml
@@ -12,6 +12,7 @@
     <import resource="classpath:alfresco/st-context.xml"/>
     <import resource="classpath*:alfresco/extension/mt/mt-context.xml"/>
     <import resource="classpath:alfresco/encryption-context.xml" />
+    <import resource="classpath:alfresco/hibernate-context.xml" />
     <import resource="classpath*:alfresco/enterprise/jmx/jmx-context.xml" />
     <import resource="classpath:alfresco/spring/*-context.xml" />
     <import resource="classpath*:alfresco/enterprise/spring/*-context.xml" />
@@ -27,7 +28,6 @@
     <import resource="classpath:alfresco/content-services-context.xml" />
     <import resource="classpath:alfresco/mt/st-admin-context.xml"/>
     <import resource="classpath:alfresco/dao/dao-context.xml" />
-    <import resource="classpath:alfresco/hibernate-context.xml" />
     <import resource="classpath:alfresco/ibatis/ibatis-context.xml" />
     <import resource="classpath:alfresco/ownable-services-context.xml" />
     <import resource="classpath:alfresco/template-services-context.xml" />
diff --git a/config/alfresco/core-services-context.xml b/config/alfresco/core-services-context.xml
index 846f350b1d..119bddad80 100644
--- a/config/alfresco/core-services-context.xml
+++ b/config/alfresco/core-services-context.xml
@@ -230,10 +230,22 @@
         </property>
     </bean>
 
-    <bean id="dataSourceCheck" class="org.alfresco.repo.domain.schema.DataSourceCheck">
-        <constructor-arg index="0" value="${db.url}" />
-        <constructor-arg index="1" value="${db.username}" />
-        <constructor-arg index="2" ref="dataSource" />
+    <bean id="dataSourceCheck" class="org.alfresco.repo.domain.schema.DataSourceCheck" init-method="init" depends-on="resourceBundles">
+        <property name="dbUrl">
+            <value>${db.url}</value>
+        </property>
+        <property name="dbUsername">
+            <value>${db.username}</value>
+        </property>
+        <property name="transactionIsolation" >
+            <value>${db.txn.isolation}</value>
+        </property>
+        <property name="dataSource">
+            <ref bean="dataSource"/>
+        </property>
+        <property name="localSessionFactory">
+            <ref bean="&amp;sessionFactory"></ref>  <!-- inject the actual factory, not a session -->
+        </property>
     </bean>
 
     <!-- transaction service -->
diff --git a/config/alfresco/messages/system-messages.properties b/config/alfresco/messages/system-messages.properties
index 9c1e732257..8d10155416 100644
--- a/config/alfresco/messages/system-messages.properties
+++ b/config/alfresco/messages/system-messages.properties
@@ -17,6 +17,10 @@ system.config_check.err.missing_content=CONTENT INTEGRITY ERROR: System content
 system.config_check.err.fix_dir_root=Ensure that the ''dir.root'' property ''{0}'' is pointing to the correct data location.
 system.config_check.msg.howto_index_recover=You may set 'index.recovery.mode=FULL' if you need to rebuild the indexes.
 system.config_check.warn.starting_with_errors=Alfresco is starting with errors.
+system.config_check.err.wrong_transaction_isolation_sql_server=The transaction isolation is set to {0}, but should be set to {1} for MS SQL Server
+system.config_check.info.db_connection=Using database URL ''{0}'' with user ''{1}''.
+system.config_check.info.db_version=Connected to database {0} version {1}
+system.config_check.err.db_connection=Database connection failed: {0}
 
 # Schema comparator messages
 #   Log messages...
diff --git a/source/java/org/alfresco/repo/domain/schema/DataSourceCheck.java b/source/java/org/alfresco/repo/domain/schema/DataSourceCheck.java
index 2fd5aedfe4..0847fbffd4 100644
--- a/source/java/org/alfresco/repo/domain/schema/DataSourceCheck.java
+++ b/source/java/org/alfresco/repo/domain/schema/DataSourceCheck.java
@@ -23,8 +23,15 @@ import java.sql.DatabaseMetaData;
 
 import javax.sql.DataSource;
 
+import org.alfresco.error.AlfrescoRuntimeException;
+import org.alfresco.hibernate.DialectFactory;
 import org.apache.commons.logging.Log;
 import org.apache.commons.logging.LogFactory;
+import org.hibernate.cfg.Configuration;
+import org.hibernate.dialect.Dialect;
+import org.hibernate.dialect.SQLServerDialect;
+import org.springframework.extensions.surf.util.I18NUtil;
+import org.springframework.orm.hibernate3.LocalSessionFactoryBean;
 
 /**
  * Bean to log connection details and attempt to ensure that the connection is OK.
@@ -36,27 +43,83 @@ public class DataSourceCheck
 {
     private static Log logger = LogFactory.getLog("org.alfresco.repo.admin");
     
-    private static final String MSG_DB_CONNECTION = "Using database URL '%s' with user '%s'.";
-    private static final String MSG_DB_VERSION = "Connected to database %s version %s";
-    private static final String ERR_DB_CONNECTION = "Database connection failed: %s";
-    
-    /**
-     * Constructor-based check of DB connection
-     */
-    public DataSourceCheck(String dbUrl, String dbUsername, DataSource dataSource)
+    private static final String MSG_DB_CONNECTION = "system.config_check.info.db_connection";
+    private static final String MSG_DB_VERSION = "system.config_check.info.db_version";
+    private static final String ERR_DB_CONNECTION = "system.config_check.err.db_connection";
+    private static final String ERR_WRONG_TRANSACTION_ISOLATION_SQL_SERVER =
+            "system.config_check.err.wrong_transaction_isolation_sql_server";
+    /** The required transaction isolation */
+    private static final int SQL_SERVER_TRANSACTION_ISOLATION = 4096;
+
+    private Configuration cfg;
+    private String dbUrl;
+    private String dbUsername;
+    private int transactionIsolation;
+    private DataSource dataSource;
+
+    public void setLocalSessionFactory(LocalSessionFactoryBean localSessionFactory)
     {
-        logger.info(String.format(MSG_DB_CONNECTION, dbUrl, dbUsername));
+        this.cfg = localSessionFactory.getConfiguration();
+    }
+
+    public void setDbUrl(String dbUrl)
+    {
+        this.dbUrl = dbUrl;
+    }
+
+    public void setDbUsername(String dbUsername)
+    {
+        this.dbUsername = dbUsername;
+    }
+
+    public void setDataSource(DataSource dataSource)
+    {
+        this.dataSource = dataSource;
+    }
+
+    public void setTransactionIsolation(int transactionIsolation)
+    {
+        this.transactionIsolation = transactionIsolation;
+    }
+
+    public void init()
+    {
+        logger.info(I18NUtil.getMessage(MSG_DB_CONNECTION, dbUrl, dbUsername));
         
         Connection con = null;
         try
         {
             con = dataSource.getConnection();
+            con.setAutoCommit(true);
             DatabaseMetaData meta = con.getMetaData();
-            logger.info(String.format(MSG_DB_VERSION, meta.getDatabaseProductName(), meta.getDatabaseProductVersion()));
+            logger.info(I18NUtil.getMessage(
+                    MSG_DB_VERSION,
+                    meta.getDatabaseProductName(), meta.getDatabaseProductVersion()));
+
+            Dialect dialect = DialectFactory.buildDialect(
+                    cfg.getProperties(),
+                    meta.getDatabaseProductName(),
+                    meta.getDatabaseMajorVersion());
+
+            // Check MS SQL Server specific settings
+            if (dialect instanceof SQLServerDialect)
+            {
+                if (transactionIsolation != SQL_SERVER_TRANSACTION_ISOLATION)
+                {
+                    throw new AlfrescoRuntimeException(
+                            ERR_WRONG_TRANSACTION_ISOLATION_SQL_SERVER,
+                            new Object[] {transactionIsolation, SQL_SERVER_TRANSACTION_ISOLATION});
+                }
+            }
+        }
+        catch (RuntimeException re)
+        {
+            // just rethrow
+            throw re;
         }
         catch (Exception e)
         {
-            throw new RuntimeException(String.format(ERR_DB_CONNECTION, e.getMessage()), e);
+            throw new AlfrescoRuntimeException(ERR_DB_CONNECTION, new Object[] {e.getMessage()}, e);
         }
         finally
         {