Nothing worked except the below mentioned solution.

Open command prompt as Administrator and enter the following commands

C:\> net stop msdtc

C:\> msdtc -uninstall

C:\> msdtc -install

followed by server restart..

http://social.msdn.microsoft.com/Forums/en-US/sqldatabaseengine/thread/eb4eda65-1759-4266-a304-1f34c4b93680/[/url]

http://36chambers.wordpress.com/2011/04/08/msdtc-no-transaction-is-active/[/url]