diff --git a/spring-batch-core/src/main/java/org/springframework/batch/core/configuration/xml/StepParser.java b/spring-batch-core/src/main/java/org/springframework/batch/core/configuration/xml/StepParser.java
index f919e33d8..a2c9c1e18 100644
--- a/spring-batch-core/src/main/java/org/springframework/batch/core/configuration/xml/StepParser.java
+++ b/spring-batch-core/src/main/java/org/springframework/batch/core/configuration/xml/StepParser.java
@@ -229,6 +229,12 @@ public class StepParser {
             bd.getPropertyValues().addPropertyValue("itemWriter", writerRef);
         }
 
+        String taskExecutorBeanId = element.getAttribute("task-executor");
+        if (StringUtils.hasText(taskExecutorBeanId)) {
+            RuntimeBeanReference taskExecutorRef = new RuntimeBeanReference(taskExecutorBeanId);
+            bd.getPropertyValues().addPropertyValue("taskExecutor", taskExecutorRef);
+        }
+
         String jobRepository = element.getAttribute("job-repository");
         RuntimeBeanReference jobRepositoryRef = new RuntimeBeanReference(jobRepository);
         bd.getPropertyValues().addPropertyValue("jobRepository", jobRepositoryRef);
@@ -245,7 +251,7 @@ public class StepParser {
         String skipLimit = element.getAttribute("skip-limit");
         if (StringUtils.hasText(skipLimit)) {
         	if (!isFaultTolerant) {
-				throw new BeanCreationException("skip-limit can only be specified if fault-tolerant is set to 'true'");
+				throw new BeanCreationException("skip-limit can only be specified if fault-tolerant is set to \"true\"");
         	}
             bd.getPropertyValues().addPropertyValue("skipLimit", skipLimit);
         }
@@ -253,11 +259,35 @@ public class StepParser {
         String retryLimit = element.getAttribute("retry-limit");
         if (StringUtils.hasText(retryLimit)) {
         	if (!isFaultTolerant) {
-				throw new BeanCreationException("retry-limit can only be specified if fault-tolerant is set to 'true'");
+				throw new BeanCreationException("retry-limit can only be specified if fault-tolerant is set to \"true\"");
         	}
             bd.getPropertyValues().addPropertyValue("retryLimit", retryLimit);
         }
 
+        String cacheCapacity = element.getAttribute("cache-capacity");
+        if (StringUtils.hasText(cacheCapacity)) {
+        	if (!isFaultTolerant) {
+				throw new BeanCreationException("cache-capacity can only be specified if fault-tolerant is set to \"true\"");
+        	}
+            bd.getPropertyValues().addPropertyValue("cacheCapacity", cacheCapacity);
+        }
+
+        String transactionAttribute = element.getAttribute("transaction-attribute");
+        if (StringUtils.hasText(transactionAttribute)) {
+        	handleTransactionAttributesElement(element, bd);
+            bd.getPropertyValues().addPropertyValue("transactionAttribute", transactionAttribute);
+        }
+
+        String isReaderTransactionalQueue = element.getAttribute("is-reader-transactional-queue");
+        if (StringUtils.hasText(isReaderTransactionalQueue)) {
+        	if (!isFaultTolerant && "true".equals(isReaderTransactionalQueue)) {
+				throw new BeanCreationException("is-reader-transactional-queue=\"true\" can only be specified if fault-tolerant is set to \"true\"");
+        	}
+        	if (isFaultTolerant) {
+        		bd.getPropertyValues().addPropertyValue("isReaderTransactionalQueue", isReaderTransactionalQueue);
+        	}
+        }
+
         handleExceptionElement(element, bd, "skippable-exception-classes", "skippableExceptionClasses", isFaultTolerant);
         
         handleExceptionElement(element, bd, "retryable-exception-classes", "retryableExceptionClasses",isFaultTolerant);
@@ -279,13 +309,16 @@ public class StepParser {
 
 	}
 
+	private void handleTransactionAttributesElement(Element element, RootBeanDefinition bd) {
+	}
+
 	private void handleExceptionElement(Element element, RootBeanDefinition bd, 
 			String attributeName, String propertyName, boolean isFaultTolerant) {
 		String exceptions = 
         	DomUtils.getChildElementValueByTagName(element, attributeName);
         if (StringUtils.hasLength(exceptions)) {
         	if (!isFaultTolerant) {
-				throw new BeanCreationException(attributeName + " can only be specified if fault-tolerant is set to 'true'");
+				throw new BeanCreationException(attributeName + " can only be specified if fault-tolerant is set to \"true\"");
         	}
 	        String[] exceptionArray = StringUtils.tokenizeToStringArray(
 	        		StringUtils.delete(exceptions, ","), "\n");
diff --git a/spring-batch-core/src/main/resources/org/springframework/batch/core/configuration/xml/spring-batch-2.0.xsd b/spring-batch-core/src/main/resources/org/springframework/batch/core/configuration/xml/spring-batch-2.0.xsd
index 41fbfc838..ad7297f13 100644
--- a/spring-batch-core/src/main/resources/org/springframework/batch/core/configuration/xml/spring-batch-2.0.xsd
+++ b/spring-batch-core/src/main/resources/org/springframework/batch/core/configuration/xml/spring-batch-2.0.xsd
@@ -281,18 +281,6 @@
 							</xsd:sequence>
 						</xsd:complexType>
 					</xsd:element>
-					<xsd:element name="transaction-attributes" minOccurs="0" maxOccurs="1">
-						<xsd:annotation>
-							<xsd:documentation><![CDATA[
-							The transaction attributes to be used for the transaction used during the execution
-							of the task within the step.
-							]]>
-							</xsd:documentation>
-						</xsd:annotation>
-						<xsd:simpleType>
-							<xsd:restriction base="xsd:string"/>
-						</xsd:simpleType>
-					</xsd:element>
 					<xsd:element name="skippable-exception-classes" minOccurs="0" maxOccurs="1">
 						<xsd:annotation>
 							<xsd:documentation><![CDATA[
@@ -384,6 +372,14 @@
 						]]></xsd:documentation>
 					</xsd:annotation>
 				</xsd:attribute>
+				<xsd:attribute name="transaction-attribute" type="xsd:string" use="optional">
+					<xsd:annotation>
+						<xsd:documentation><![CDATA[
+						The transaction attributes to be used for the transaction used during the execution
+						of the task within the step.
+						]]></xsd:documentation>
+					</xsd:annotation>
+				</xsd:attribute>
 				<xsd:attribute name="is-reader-transactional-queue" type="xsd:boolean" default="false" use="optional">
 					<xsd:annotation>
 						<xsd:documentation><![CDATA[
diff --git a/spring-batch-core/src/test/java/org/springframework/batch/core/configuration/xml/StepWithFaultTolerantProcessTaskJobParserTests.java b/spring-batch-core/src/test/java/org/springframework/batch/core/configuration/xml/StepWithFaultTolerantProcessTaskJobParserTests.java
index ca94ecd84..4d0174c45 100644
--- a/spring-batch-core/src/test/java/org/springframework/batch/core/configuration/xml/StepWithFaultTolerantProcessTaskJobParserTests.java
+++ b/spring-batch-core/src/test/java/org/springframework/batch/core/configuration/xml/StepWithFaultTolerantProcessTaskJobParserTests.java
@@ -34,9 +34,13 @@ import org.springframework.batch.item.ItemStream;
 import org.springframework.batch.retry.RetryListener;
 import org.springframework.beans.factory.annotation.Autowired;
 import org.springframework.beans.factory.annotation.Qualifier;
+import org.springframework.scheduling.concurrent.ConcurrentTaskExecutor;
 import org.springframework.test.context.ContextConfiguration;
 import org.springframework.test.context.junit4.SpringJUnit4ClassRunner;
 import org.springframework.test.util.ReflectionTestUtils;
+import org.springframework.transaction.TransactionDefinition;
+import org.springframework.transaction.interceptor.RollbackRuleAttribute;
+import org.springframework.transaction.interceptor.RuleBasedTransactionAttribute;
 
 
 /**
@@ -87,6 +91,23 @@ public class StepWithFaultTolerantProcessTaskJobParserTests {
 		assertEquals("wrong skip-limit:", 20, sl);
 		Object rl = ReflectionTestUtils.getField(factory, "retryLimit");
 		assertEquals("wrong retry-limit:", 3, rl);
+		Object cc = ReflectionTestUtils.getField(factory, "cacheCapacity");
+		assertEquals("wrong cache-capacity:", 100, cc);
+		Object txa = ReflectionTestUtils.getField(factory, "transactionAttribute");
+		assertEquals("wrong transaction-attribute:", TransactionDefinition.PROPAGATION_REQUIRED,
+				((RuleBasedTransactionAttribute)txa).getPropagationBehavior());
+		assertEquals("wrong transaction-attribute:", TransactionDefinition.ISOLATION_DEFAULT,
+				((RuleBasedTransactionAttribute)txa).getIsolationLevel());
+		assertEquals("wrong transaction-attribute:", 10,
+				((RuleBasedTransactionAttribute)txa).getTimeout());
+		RollbackRuleAttribute rra = 
+			(RollbackRuleAttribute) ((RuleBasedTransactionAttribute)txa).getRollbackRules().get(0);
+		assertEquals("wrong transaction-attribute:", 
+				"org.springframework.dao.DataIntegrityViolationException", rra.getExceptionName());
+		Object txq = ReflectionTestUtils.getField(factory, "isReaderTransactionalQueue");
+		assertEquals("wrong is-reader-transactional-queue:", true, txq);
+		Object te = ReflectionTestUtils.getField(factory, "taskExecutor");
+		assertEquals("wrong task-executor:", ConcurrentTaskExecutor.class, te.getClass());
 		Object listeners = ReflectionTestUtils.getField(factory, "listeners");
 		assertEquals("wrong number of listeners:", 2, ((StepListener[])listeners).length);
 		Object retryListeners = ReflectionTestUtils.getField(factory, "retryListeners");
diff --git a/spring-batch-core/src/test/java/org/springframework/batch/core/configuration/xml/TestRetryListener.java b/spring-batch-core/src/test/java/org/springframework/batch/core/configuration/xml/TestRetryListener.java
index 677c6b41d..29a3b4fe3 100644
--- a/spring-batch-core/src/test/java/org/springframework/batch/core/configuration/xml/TestRetryListener.java
+++ b/spring-batch-core/src/test/java/org/springframework/batch/core/configuration/xml/TestRetryListener.java
@@ -15,7 +15,6 @@ public class TestRetryListener extends AbstractTestComponent implements RetryLis
 	}
 
 	public <T> boolean open(RetryContext context, RetryCallback<T> callback) {
-		System.out.println("RETRY RETRY RETRY RETRY");
 		executed = true;
 		return true;
 	}
diff --git a/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/StepWithFaultTolerantProcessTaskJobParserTests-context.xml b/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/StepWithFaultTolerantProcessTaskJobParserTests-context.xml
index 7a4fecb46..283ccdea9 100644
--- a/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/StepWithFaultTolerantProcessTaskJobParserTests-context.xml
+++ b/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/StepWithFaultTolerantProcessTaskJobParserTests-context.xml
@@ -7,9 +7,13 @@
 	<beans:import resource="common-context.xml" />
 	
 	<job id="job">
-		<step name="ft-step">
+		<step name="step">
 			<process-task reader="reader" processor="processor" writer="writer"
-					fault-tolerant="true" commit-interval="10" skip-limit="20" retry-limit="3">
+					fault-tolerant="true" commit-interval="10" skip-limit="20" 
+					retry-limit="3" cache-capacity="100"
+					transaction-attribute="PROPAGATION_REQUIRED,ISOLATION_DEFAULT,timeout_10,-org.springframework.dao.DataIntegrityViolationException" 
+					is-reader-transactional-queue="true"
+					task-executor="taskExecutor">
 				<listeners>
 					<listener class="org.springframework.batch.core.configuration.xml.TestListener"/>
 					<listener ref="listener"/>
@@ -31,5 +35,7 @@
 	<beans:bean id="writer" class="org.springframework.batch.core.configuration.xml.TestWriter"/>
 
 	<beans:bean id="listener" class="org.springframework.batch.core.configuration.xml.TestListener"/>
+	
+	<beans:bean id="taskExecutor" class="org.springframework.scheduling.concurrent.ConcurrentTaskExecutor"/>
 
 </beans:beans>
\ No newline at end of file