September 6, 2005 at 7:47 pm
I just ran into this myself with a new server, you have to manually configure the DTC service. Even though it is running, it won't do anything until you slap it around.
http://support.microsoft.com/default.aspx?scid=kb;en-us;329332
"The problem occurs because Microsoft Distributed Transaction Coordinator (MS DTC) is not configured for network access. By default, the network access settings of MS DTC are disabled on new installations of SQL Server 2000 on computers that are running Windows Server 2003."
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