Anyone found a solution for this issue? I'm facing a similar/the same problem:

I'm executing a SQL2008 stored procedure, which executes a SQL2005 stored procedure (via LINKED SERVER), which, in turn, executes a SELECT on an Oracle DB on a UNIX server (also via LINKED SERVER).

I get the same error:

{"The current transaction cannot be committed and cannot support operations that write to the log file. Roll back the transaction.\rPR_PTT_GET_LOTTRACE_PRM, Msg 7391, Line 1: The operation could not be performed because OLE DB provider \"MSDAORA\" for linked server \"U03P\" was unable to begin a distributed transaction. ((null))\rTransaction count after EXECUTE indicates a mismatching number of BEGIN and COMMIT statements. Previous count = 1, current count = 0."}

Any ideas?