NamedCache problem with xml config

I am using the Tree API for Infinispan. I want to persist the cache. I started with the following configuration xml for my loader:
<infinispan>
<default>
<loaders passivation="false" shared="false" preload="true">
<loader
class="org.infinispan.loaders.file.FileCacheStore"
fetchPersistentState="true"
purgerThreads="1"
purgeSynchronously="true"
ignoreModifications="false"
purgeOnStartup="false">
<properties>
<property name="location" value="/home/eialbur/infiniCache" />
</properties>
</loader>
</loaders>
<invocationBatching enabled="true"/>
</default>
</infinispan>

This worked great, but I wanted it to be a named cache. I modified the xml changing <default> to <namedCache name="foo">.
This now produces the runtime error: Cannot enable Invocation Batching when the Transaction Mode is NON_TRANSACTIONAL, set the transaction mode to TRANSACTIONAL

So then I modified the xml as follows:
<infinispan>
<namedCache name="foo" >
<loaders passivation="false" shared="false" preload="true">
<loader
class="org.infinispan.loaders.file.FileCacheStore"
fetchPersistentState="true"
purgerThreads="1"
purgeSynchronously="true"
ignoreModifications="false"
purgeOnStartup="false">
<properties>
<property name="location" value="/home/eialbur/infiniCache" />
</properties>
</loader>
</loaders>
<transaction transactionMode="TRANSACTIONAL" />
<invocationBatching enabled="true"/>
</namedCache>
</infinispan>

This now produces the following runtime error: invocationBatching is not enabled. Make sure this is enabled by calling configurationBuilder.invocationBatching().enable()

I assume this is some sort of problem with Infinispan. It appears that namedCache is having troubles with configuring from xml.