I would note that is is PostgreSQL specific and we need to rewrite
 _query_update_push_client_jid
in 
 backend/server/rhnServer/server_lib.py
using this guide:
 https://fedorahosted.org/spacewalk/wiki/PostgreSQLPortingGuide#Noautonomoustransactions

(In reply to comment #1)
> I would note that is is PostgreSQL specific and we need to rewrite
>  _query_update_push_client_jid
> in 
>  backend/server/rhnServer/server_lib.py
> using this guide:
> 
> https://fedorahosted.org/spacewalk/wiki/PostgreSQLPortingGuide#Noautonomoustransactions

OK. I don't find server_lib.py in the server. I did just update to the nightlys for 1-3-11 to kill a osad-dispatcher from eating all the postgrs processes with "in transactions"/

(In reply to comment #2)
My bad. Wrong screen. Searching on a client system. I found the server_lib/py file and edited it as below (also changing out the autonomous section above the _query_update_push_client_jid )

#_query_update_push_client_jid = rhnSQL.Statement("""
#declare
#    pragma autonomous_transaction;
#begin
#    update rhnPushClient
#       set jabber_id = :jid,
#           next_action_time = NULL,
#           last_ping_time = NULL
#     where server_id = :server_id;
#    commit;
#end;
#""")
_query_update_push_client_jid = rhnSQL.Statement("""
    update rhnPushClient
       set jabber_id = :jid,
           next_action_time = NULL,
           last_ping_time = NULL
     where server_id = :server_id;
""")


And updated as well:

#_query_update_push_client_registration = rhnSQL.Statement("""
#declare
#    pragma autonomous_transaction;
#begin
#    update rhnPushClient 
#       set name = :name,
#           shared_key = :shared_key,
#           state_id = :state_id,
#           next_action_time = NULL,
#           last_ping_time = NULL
#     where server_id = :server_id;
#    if sql%rowcount = 1 then
#        -- Entry successfully updated
#        commit;
#        return;
#    end if;
#
#    insert into rhnPushClient 
#           (id, server_id, name, shared_key, state_id)
#    values (sequence_nextval('rhn_pclient_id_seq'), :server_id, :name, 
#            :shared_key, :state_id);
#    commit;
#end;
#""")
_query_update_push_client_registration = rhnSQL.Statement("""
    update rhnPushClient 
       set name = :name,
           shared_key = :shared_key,
           state_id = :state_id,
           next_action_time = NULL,
           last_ping_time = NULL
     where server_id = :server_id;

    insert into rhnPushClient 
           (id, server_id, name, shared_key, state_id)
    values (sequence_nextval('rhn_pclient_id_seq'), :server_id, :name, 
            :shared_key, :state_id);
""")

First one is commit as 279a3453e7bf7f6321ece41868eec29190d43b8c
But the second is wrong. The original code is like

update
if rowcount = 1 then
  return
else # i.e. rowcount = 0
  insert

and your change do the insert every time, which is wrong

Hmm, this may be better fix:

_query_update_push_client_registration = rhnSQL.Statement("""
begin
    update rhnPushClient 
       set name = :name,
           shared_key = :shared_key,
           state_id = :state_id,
           next_action_time = NULL,
           last_ping_time = NULL
     where server_id = :server_id;
    if sql%rowcount = 1 then
        -- Entry successfully updated
        return;
    end if;

    insert into rhnPushClient 
           (id, server_id, name, shared_key, state_id)
    values (sequence_nextval('rhn_pclient_id_seq'), :server_id, :name, 
            :shared_key, :state_id);
end;
""")

and then in def update_push_client_registration, put:
rhnSQL.commit()
just after the lines:
    h = rhnSQL.prepare(_query_update_push_client_registration)
    h.execute(server_id=server_id, name=client_name,
        shared_key=shared_key, state_id=state_id)

Can you please test that this work correctly as I have no time to test it?

working on this and need to clarify design goal. original code here:
_query_update_push_client_registration = rhnSQL.Statement("""
declare
    pragma autonomous_transaction;
begin
    update rhnPushClient 
       set name = :name,
           shared_key = :shared_key,
           state_id = :state_id,
           next_action_time = NULL,
           last_ping_time = NULL
     where server_id = :server_id;
    if sql%rowcount = 1 then
        -- Entry successfully updated
        commit;
        return;
    end if;

    insert into rhnPushClient 
           (id, server_id, name, shared_key, state_id)
    values (sequence_nextval('rhn_pclient_id_seq'), :server_id, :name, 
            :shared_key, :state_id);
    commit;
end;
""")


So the declare pragma line is out (oracle only). The update should only be committed if only a single row is to be processed (if sql%rowcount is oracle only, gets changed to postgres version). 
If more than one row or exactly 0 rows then add to rhnPushClient.

My new version is:

_query_update_push_client_registration = rhnSQL.Statement("""
begin;
    update rhnPushClient 
       set name = :name,
           shared_key = :shared_key,
           state_id = :state_id,
           next_action_time = NULL,
           last_ping_time = NULL
     where server_id = :server_id;

    get diagnostics my_numrows := ROW_COUNT;

    if my_numrows = 1 then
        -- Entry successfully updated
        commit;
        end;
    end if;

      insert into rhnPushClient 
           (id, server_id, name, shared_key, state_id)
      values (sequence_nextval('rhn_pclient_id_seq'), :server_id, :name, 
            :shared_key, :state_id);
    commit;
    end;
""")


but no joy with a syntax error with get diagnostics

SQL Error generated: ('syntax error at or near "get"\nLINE 11:     get diagnostics my_numrows := ROW_COUNT;\n             ^\n', 0, "\nbegin;\n    update rhnPushClient \n       set name = %(name)s,\n           shared_key = %(shared_key)s,\n           state_id = %(state_id)s,\n           next_action_time = NULL,\n           last_ping_time = NULL\n     where server_id = %(server_id)s;\n\n    get diagnostics my_numrows := ROW_COUNT;\n\n    if my_numrows = 1 then\n        -- Entry successfully updated\n        commit;\n        end;\n    end if;\n\n      insert into rhnPushClient \n           (id, server_id, name, shared_key, state_id)\n      values (sequence_nextval('rhn_pclient_id_seq'), %(server_id)s, %(name)s, \n            %(shared_key)s, %(state_id)s);\n    commit;\n    end;\n")


Do I need to put all of this into a plpgsql block?

OK. I reread your instructions and and tested the following:

_query_update_push_client_registration = rhnSQL.Statement("""
begin
    update rhnPushClient 
       set name = :name,
           shared_key = :shared_key,
           state_id = :state_id,
           next_action_time = NULL,
           last_ping_time = NULL
     where server_id = :server_id;

    get diagnostics my_numrows := ROW_COUNT;

    if my_numrows = 1 then
        -- Entry successfully updated
        return;
    end if;

      insert into rhnPushClient 
           (id, server_id, name, shared_key, state_id)
      values (sequence_nextval('rhn_pclient_id_seq'), :server_id, :name, 
            :shared_key, :state_id);
    end;
""")

 - and -

def update_push_client_registration(server_id):
<snip>
    h = rhnSQL.prepare(_query_update_push_client_registration)
    h.execute(server_id=server_id, name=client_name,
        shared_key=shared_key, state_id=state_id)
    rhnSQL.commit()
<snip>


This generates a SQL error:
SQL Error generated: ('syntax error at or near "update"\nLINE 3:     update rhnPushClient \n            ^\n', 0, "\nbegin\n    update rhnPushClient \n       set name = %(name)s,\n           shared_key = %(shared_key)s,\n           state_id = %(state_id)s,\n           next_action_time = NULL,\n           last_ping_time = NULL\n     where server_id = %(server_id)s;\n\n    get diagnostics my_numrows := ROW_COUNT;\n\n    if my_numrows = 1 then\n        -- Entry successfully updated\n        return;\n    end if;\n\n      insert into rhnPushClient \n           (id, server_id, name, shared_key, state_id)\n      values (sequence_nextval('rhn_pclient_id_seq'), %(server_id)s, %(name)s, \n            %(shared_key)s, %(state_id)s);\n    end;\n")

fixed. tested with no errors. patch below:

diff -up server_lib.py.orig server_lib.py
--- server_lib.py.orig	2011-01-06 10:36:08.496183999 -0500
+++ server_lib.py	2011-01-06 14:52:59.480184002 -0500
@@ -303,8 +303,9 @@ def entitlement_grants_service(entitleme
 # Push client related
 # XXX should be moved to a different file?
 _query_update_push_client_registration = rhnSQL.Statement("""
+create or replace function qupcr() returns void as $_$
 declare
-    pragma autonomous_transaction;
+    my_numrows integer := 0;
 begin
     update rhnPushClient 
        set name = :name,
@@ -313,9 +314,11 @@ begin
            next_action_time = NULL,
            last_ping_time = NULL
      where server_id = :server_id;
-    if sql%rowcount = 1 then
+
+    get diagnostics my_numrows := ROW_COUNT;
+
+    if my_numrows = 1 then
         -- Entry successfully updated
-        commit;
         return;
     end if;
 
@@ -323,8 +326,8 @@ begin
            (id, server_id, name, shared_key, state_id)
     values (sequence_nextval('rhn_pclient_id_seq'), :server_id, :name, 
             :shared_key, :state_id);
-    commit;
-end;
+    end;
+$_$ language plpgsql;
 """)
 def update_push_client_registration(server_id):
     # Generate a new a new client name and shared key
@@ -338,6 +341,7 @@ def update_push_client_registration(serv
     h = rhnSQL.prepare(_query_update_push_client_registration)
     h.execute(server_id=server_id, name=client_name,
         shared_key=shared_key, state_id=state_id)
+    rhnSQL.commit()
     # Get the server's (database) time
     # XXX
     timestamp = int(time.time())

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