First verify that DTC (Distributed Transaction Coordinator) is up and running properly on both(/all) instances.
SQL DBA,SQL Server MVP('07, '08, '09)
Prosecutor James Blackburn, in closing argument in the "Fatal Vision" murders trial: "If in the future, you should cry a tear, cry one for them [the murder victims]. If in the future, you should say a prayer, say one for them. And if in the future, you should light a candle, light one for them."