Jboss 6.0 Final Hibernate level 2 Cache

Hi,

I am trying to integrate infinispan to get hibernate level 2 cache using default setting.
Below is my configuration in brief
1) presistence .xml
<property name="hibernate.cache.use_query_cache" value="true"/>
<property name="hibernate.cache.use_second_level_cache" value="true"/>
<property name="hibernate.cache.infinispan.statistics" value="true" />
<property name="hibernate.cache.infinispan.cachemanager" value="java:CacheManager/entity" />
<property name="hibernate.cache.region.factory_class" value="org.hibernate.cache.infinispan.JndiInfinispanRegionFactory"/>
<property name="javax.persistence.sharedCache.mode" value="ENABLE_SELECTIVE"/>
<property name="hibernate.generate_statistics" value="true"/>
2) query.setHint("org.hibernate.cacheable", true);
3) @Cacheable
@Cache(usage = CacheConcurrencyStrategy.READ_ONLY)

Problem: I do not see entity beans being cached. No statistics on hits & misses. Sql query seems to be executed every time with out hitting cache. I do not see any errors in the log, it seems infinispan is initializing fine. I am not sure what else is invloved, tried everything in the forum. Here is infinispan log in Brief
2011-06-27 14:58:08,817 DEBUG [org.infinispan.interceptors.InterceptorChain] Interceptor chain is:
>> org.infinispan.interceptors.InvocationContextInterceptor
>> org.infinispan.interceptors.CacheMgmtInterceptor
>> org.infinispan.interceptors.TxInterceptor
>> org.infinispan.interceptors.NotificationInterceptor
>> org.infinispan.interceptors.LockingInterceptor
>> org.infinispan.interceptors.CallInterceptor
2011-06-27 14:58:08,817 DEBUG [org.infinispan.jmx.ResourceDMBean] @MBean description set - General statistics such as timings, hit/miss ratio, etc.
2011-06-27 14:58:08,817 DEBUG [org.infinispan.jmx.ResourceDMBean] @MBean description set - Component that acts as a manager, factory and container for caches in the system.
2011-06-27 14:58:08,817 DEBUG [org.infinispan.jmx.ResourceDMBean] @MBean description set - Component that manages the cache's participation in JTA transactions.
2011-06-27 14:58:08,817 DEBUG [org.infinispan.jmx.ResourceDMBean] @MBean description set - Manages all remote calls to remote cache instances in the cluster.
2011-06-27 14:58:08,817 DEBUG [org.infinispan.jmx.ResourceDMBean] @MBean description set - Component that acts as a manager, factory and container for caches in the system.
2011-06-27 14:58:08,817 DEBUG [org.infinispan.jmx.ResourceDMBean] @MBean description set - Manager that handles MVCC locks for entries