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To simplify things I created a test application that eliminates my inherited business layer and cuts the number of business objects down to two. What I've found out from running the test application and looking at the database server is that it appears that when saving on a transaction, the ES server tries to obtain one pooled connection for every record. The parent/child relationship doesn't make a difference. If I have 99 parent records and 0 child records everything works fine. But when the parent record count exceeds the maximum number of pooled connections (100 on my server), the save will likely fail and the failure happens when the connection timeout is reached, which I've configured to be 45 seconds. I say likely because 101 may eventually save but 200 will always fail. When there are both parent and child records, the error begins to occur when the total record count exceeds 100.
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