DB2 9.7 JDBC Driver causes a problem for hibernate native id strategy

I've been struggling with a problem where an application I'm upgrading had problems inserting new records into a database using hibernate.

App Server: IBM Websphere Application Server 6.1
DB: IBM DB2 8.?
JDBC Driver: Those packaged with IBM DB2Express v9.7

I would get a message stating:
org.hibernate.HibernateException: The database returned no natively generated identity value

When I changed my Websphere server configuration to point to an older db2 jdbc driver, the insert succeeded.

Information and workaround options are available here.