diff --git a/spring-batch-core/src/test/java/org/springframework/batch/core/step/item/FaultTolerantStepFactoryBeanNonBufferingTests.java b/spring-batch-core/src/test/java/org/springframework/batch/core/step/item/FaultTolerantStepFactoryBeanNonBufferingTests.java
index 1ef59d9c0..075d91525 100644
--- a/spring-batch-core/src/test/java/org/springframework/batch/core/step/item/FaultTolerantStepFactoryBeanNonBufferingTests.java
+++ b/spring-batch-core/src/test/java/org/springframework/batch/core/step/item/FaultTolerantStepFactoryBeanNonBufferingTests.java
@@ -62,7 +62,7 @@ public class FaultTolerantStepFactoryBeanNonBufferingTests {
 		factory.setItemWriter(writer);
 		factory.setSkippableExceptionClasses(skippableExceptions);
 		factory.setSkipLimit(2);
-		factory.setIsReaderTransactional(true);
+		factory.setIsReaderTransactionalQueue(true);
 
 		JobInstance jobInstance = new JobInstance(new Long(1), new JobParameters(), "skipJob");
 		jobExecution = new JobExecution(jobInstance);
diff --git a/spring-batch-core/src/test/java/org/springframework/batch/core/step/item/FaultTolerantStepFactoryBeanTests.java b/spring-batch-core/src/test/java/org/springframework/batch/core/step/item/FaultTolerantStepFactoryBeanTests.java
index 77b5ac914..6d37eca06 100644
--- a/spring-batch-core/src/test/java/org/springframework/batch/core/step/item/FaultTolerantStepFactoryBeanTests.java
+++ b/spring-batch-core/src/test/java/org/springframework/batch/core/step/item/FaultTolerantStepFactoryBeanTests.java
@@ -159,7 +159,7 @@ public class FaultTolerantStepFactoryBeanTests {
 	}
 
 	/**
-	 * Check rollback write exception does not cause rollback when included on
+	 * Check that rollback write exception does cause rollback when included on
 	 * transaction attributes as "no rollback for".
 	 */
 	@Test
@@ -172,14 +172,15 @@ public class FaultTolerantStepFactoryBeanTests {
 		Step step = (Step) factory.getObject();
 
 		StepExecution stepExecution = new StepExecution(step.getName(), jobExecution);
+		
 		step.execute(stepExecution);
 
-		assertEquals(2, stepExecution.getSkipCount());
+		assertEquals(1, stepExecution.getSkipCount());
 		assertEquals(1, stepExecution.getReadSkipCount());
-		assertEquals(1, stepExecution.getWriteSkipCount());
+		assertEquals(0, stepExecution.getWriteSkipCount());
 
-		// no rollbacks
-		assertEquals(0, stepExecution.getRollbackCount());
+		// one rollback for write exception
+		assertEquals(1, stepExecution.getRollbackCount());
 
 		assertEquals(4, stepExecution.getReadCount());
 
diff --git a/spring-batch-samples/src/main/java/org/springframework/batch/sample/domain/trade/internal/TradeProcessor.java b/spring-batch-samples/src/main/java/org/springframework/batch/sample/domain/trade/internal/TradeProcessor.java
new file mode 100644
index 000000000..23fcad4c2
--- /dev/null
+++ b/spring-batch-samples/src/main/java/org/springframework/batch/sample/domain/trade/internal/TradeProcessor.java
@@ -0,0 +1,50 @@
+/*
+ * Copyright 2006-2007 the original author or authors.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.springframework.batch.sample.domain.trade.internal;
+
+import org.springframework.batch.item.ItemProcessor;
+import org.springframework.batch.item.validator.ValidationException;
+import org.springframework.batch.sample.domain.trade.Trade;
+
+/**
+ * Processes the Trade - throwing validation errors if necessary.
+ */
+public class TradeProcessor implements ItemProcessor<Trade, Trade> {
+
+	private int failure = -1;
+
+	private int index = 0;
+	
+	private Trade failedItem = null;
+
+	/**
+	 * Public setter for the the index on which failure should occur.
+	 * 
+	 * @param failure the failure to set
+	 */
+	public void setValidationFailure(int failure) {
+		this.failure = failure;
+	}
+
+	public Trade process(Trade item) throws Exception {
+		if ((failedItem == null && index++ == failure) || (failedItem != null && failedItem.equals(item))) {
+			failedItem = item;
+			throw new ValidationException("Some bad data for " + failedItem);
+		}
+		return item;
+	}
+}
diff --git a/spring-batch-samples/src/main/java/org/springframework/batch/sample/support/ItemTrackingItemWriter.java b/spring-batch-samples/src/main/java/org/springframework/batch/sample/support/ItemTrackingItemWriter.java
index aa468f8d7..e2ff0baed 100644
--- a/spring-batch-samples/src/main/java/org/springframework/batch/sample/support/ItemTrackingItemWriter.java
+++ b/spring-batch-samples/src/main/java/org/springframework/batch/sample/support/ItemTrackingItemWriter.java
@@ -4,7 +4,6 @@ import java.util.ArrayList;
 import java.util.List;
 
 import org.springframework.batch.item.ItemWriter;
-import org.springframework.batch.item.validator.ValidationException;
 
 /**
  * Remembers all items written - useful for testing.
@@ -21,7 +20,7 @@ public class ItemTrackingItemWriter<T> implements ItemWriter<T> {
 
 	public void write(List<? extends T> items) throws Exception {
 		if (failed!=null && items.contains(failed)) {
-			throw new ValidationException("validation failed");			
+			throw new RuntimeException("write failed again");			
 		}
 		this.items.addAll(items);
 		int current = counter;
@@ -29,7 +28,7 @@ public class ItemTrackingItemWriter<T> implements ItemWriter<T> {
 		if (current < failure && counter >= failure) {
 			failed = items.get(failure-current-1);
 			this.items.remove(failed);
-			throw new ValidationException("validation failed");
+			throw new RuntimeException("write failed");
 		}
 	}
 
@@ -37,7 +36,7 @@ public class ItemTrackingItemWriter<T> implements ItemWriter<T> {
 		return items;
 	}
 
-	public void setValidationFailure(int failure) {
+	public void setWriteFailure(int failure) {
 		this.failure = failure;
 	}
 
diff --git a/spring-batch-samples/src/main/resources/jobs/skipSampleJob.xml b/spring-batch-samples/src/main/resources/jobs/skipSampleJob.xml
index 9485aa30c..46ebc1874 100644
--- a/spring-batch-samples/src/main/resources/jobs/skipSampleJob.xml
+++ b/spring-batch-samples/src/main/resources/jobs/skipSampleJob.xml
@@ -16,20 +16,33 @@
 				<bean id="step1" parent="skipLimitStep">
 					<property name="skipLimit" value="1" />
 					<property name="itemReader" ref="fileItemReader" />
+					<property name="itemProcessor">
+						<bean
+							class="org.springframework.batch.sample.domain.trade.internal.TradeProcessor"
+							p:validationFailure="3" />
+					</property>
 					<property name="itemWriter">
 						<bean
 							class="org.springframework.batch.sample.domain.trade.internal.TradeWriter"
-							p:dao-ref="tradeDao" p:failure="3" />
+							p:dao-ref="tradeDao" />
 					</property>
 				</bean>
 				<bean id="step2" parent="skipLimitStep">
 					<property name="commitInterval" value="2" />
 					<property name="skipLimit" value="1" />
 					<!-- No rollback for exceptions that are marked with "+" in the tx attributes -->
-					<property name="transactionAttribute"
-						value="+org.springframework.batch.item.validator.ValidationException" />
+					<property name="skippableExceptionClasses">
+			            <list>
+			                <value>org.springframework.batch.item.validator.ValidationException</value>
+			            </list>
+					</property>
 					<property name="itemReader"
 						ref="tradeSqlItemReader" />
+					<property name="itemProcessor">
+						<bean
+							class="org.springframework.batch.sample.domain.trade.internal.TradeProcessor"
+							p:validationFailure="2" />
+					</property>
 					<property name="itemWriter"
 						ref="itemTrackingWriter" />
 				</bean>
@@ -38,8 +51,7 @@
 	</bean>
 
 	<bean id="itemTrackingWriter"
-		class="org.springframework.batch.sample.support.ItemTrackingItemWriter"
-		p:validationFailure="2" />
+		class="org.springframework.batch.sample.support.ItemTrackingItemWriter" />
 
 	<bean id="tradeSqlItemReader"
 		class="org.springframework.batch.item.database.JdbcCursorItemReader">
diff --git a/spring-batch-samples/src/test/java/org/springframework/batch/sample/SkipSampleFunctionalTests.java b/spring-batch-samples/src/test/java/org/springframework/batch/sample/SkipSampleFunctionalTests.java
index aaeb24acb..2545db4fe 100644
--- a/spring-batch-samples/src/test/java/org/springframework/batch/sample/SkipSampleFunctionalTests.java
+++ b/spring-batch-samples/src/test/java/org/springframework/batch/sample/SkipSampleFunctionalTests.java
@@ -45,8 +45,8 @@ public class SkipSampleFunctionalTests extends AbstractValidatingBatchLauncherTe
 		// 5 input records, 1 skipped => 4 written to output
 		assertEquals(before + 4, after);
 		
-		// no item was processed twice (no rollback occurred despite error on write)
-		assertEquals(after, writer.getItems().size());
+		// no item was processed twice (one rollback occurred due to validation error)
+		assertEquals(after - 1, writer.getItems().size());
 	}
 
 }
diff --git a/spring-batch-samples/src/test/java/org/springframework/batch/sample/support/ItemTrackingItemWriterTests.java b/spring-batch-samples/src/test/java/org/springframework/batch/sample/support/ItemTrackingItemWriterTests.java
index 2e66cc197..461379d67 100644
--- a/spring-batch-samples/src/test/java/org/springframework/batch/sample/support/ItemTrackingItemWriterTests.java
+++ b/spring-batch-samples/src/test/java/org/springframework/batch/sample/support/ItemTrackingItemWriterTests.java
@@ -42,13 +42,13 @@ public class ItemTrackingItemWriterTests {
 	}
 
 	@Test
-	public void testValidationFailure() throws Exception {
-		writer.setValidationFailure(2);
+	public void testWriteFailure() throws Exception {
+		writer.setWriteFailure(2);
 		try {
 			writer.write(Arrays.asList("a", "b", "c"));
-			fail("Expected ValidationException");
+			fail("Expected Write Failure Exception");
 		}
-		catch (ValidationException e) {
+		catch (RuntimeException e) {
 			// expected
 		}
 		// the failed item is removed
@@ -57,9 +57,9 @@ public class ItemTrackingItemWriterTests {
 		assertEquals(5, writer.getItems().size());
 		try {
 			writer.write(Arrays.asList("f", "b", "g"));
-			fail("Expected ValidationException");
+			fail("Expected RuntimeException");
 		}
-		catch (ValidationException e) {
+		catch (RuntimeException e) {
 			// expected
 		}
 		// barf immediately if a failure is detected