When creating/editing a 2.x CMP in IDEA, the ejb-jar.xml file is automatically updated with the changes. The <reentrant> element of ejb-jar.xml can be either 'true' or 'false' (lower-case), but IDEA will set the value to 'False' which breaks XML validation.
I'm using the following schema to define <ejb-jar>:
<ejb-jar
xmlns="
http://java.sun.com/xml/ns/j2ee"
xmlns:xsi="
http://www.w3.org/2001/XMLSchema-instance"
xsi:schemaLocation="
http://java.sun.com/xml/ns/j2ee http://java.sun.com/xml/ns/j2ee/ejb-jar_2_1.xsd"
version="2.1">
Environment: Windows XP
Issue was resolved