--- /home/app/django-hg/django/db/transaction.py	2008-06-25 06:00:27.000000000 -0700
+++ django/db/transaction.py	2009-01-05 06:25:50.000000000 -0800
@@ -218,9 +218,11 @@
     def _commit_manually(*args, **kw):
         try:
             enter_transaction_management()
+            connection._enter_transaction_management()
             managed(True)
             return func(*args, **kw)
         finally:
+            connection._leave_transaction_management()
             leave_transaction_management()
 
     return wraps(func)(_commit_manually)
--- /home/app/django-hg/django/db/backends/postgresql_psycopg2/base.py	2008-07-21 05:44:36.000000000 -0700
+++ django/db/backends/postgresql_psycopg2/base.py	2009-01-05 06:25:50.000000000 -0800
@@ -56,6 +56,26 @@
         'iendswith': 'LIKE LOWER(%s)',
     }
 
+    def _enter_transaction_management(self):
+        """Manages the mapping of transaction management to isolation levels"""
+
+        if getattr(self, '_isolation_level', 0) == 0:
+            try:
+                if self.connection != None:
+                    self.connection.set_isolation_level(1)
+            finally:
+                self._isolation_level = 1
+
+    def _leave_transaction_management(self):
+        """Manages the mapping of transaction management to isolation levels"""
+
+        if getattr(self, '_isolation_level', 1) == 1:
+            try:
+                if self.connection != None:
+                    self.connection.set_isolation_level(0)
+            finally:
+                self._isolation_level = 0
+
     def _cursor(self, settings, *args, **kwargs):
         first_cursor = False
         if self.connection is None:
@@ -73,8 +93,9 @@
             if settings.DATABASE_PORT:
                 conn_string += " port=%s" % settings.DATABASE_PORT
             self.connection = Database.connect(conn_string, **self.options)
-            self.connection.set_isolation_level(1) # make transactions transparent to all cursors
             self.connection.set_client_encoding('UTF8')
+            # make transactions transparent to all cursors
+            self.connection.set_isolation_level(getattr(self, '_isolation_level', 0))
         cursor = self.connection.cursor(*args, **kwargs)
         cursor.tzinfo_factory = None
         if first_cursor: