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copied!<p>You need to enable network DTC access as described in this <a href="http://technet.microsoft.com/en-us/library/cc753510.aspx" rel="noreferrer">Microsoft TechNet Article</a>. This change may have to be made on both the database and application servers. Often times DTC is already turned on a database server so I'd look at the application server first.</p> <p>Here is a screen shot of what we use except for the "Allow Remote Administration" option: <img src="https://i.stack.imgur.com/8YOq7.png" alt="Security Configuration Screenshot"></p> <p>I have not run into the HRESULT E_Fail issue you are now having but this article on <a href="http://blogs.msdn.com/florinlazar/archive/2004/06/18/159127.aspx" rel="noreferrer">XP SP2 and transactions</a> had this interesting suggestion:</p> <blockquote> <p>Another configuration setting that you need to be aware (although I consider it to be an uncommon scenario) is RestrictRemoteClients registry key. If the value of this key is set to 2 (RPC_RESTRICT_REMOTE_CLIENT_HIGH) then MSDTC network transactions will not be able to work properly. MSDTC supports only RPC_RESTRICT_REMOTE_CLIENT_NONE (0) and RPC_RESTRICT_REMOTE_CLIENT_DEFAULT (1) values. See <a href="http://www.microsoft.com/technet/prodtechnol/winxppro/maintain/sp2netwk.mspx#XSLTsection128121120120" rel="noreferrer">http://www.microsoft.com/technet/prodtechnol/winxppro/maintain/sp2netwk.mspx#XSLTsection128121120120</a> for more info on RestrictRemoteClients.</p> </blockquote> <p>Finally, while not specific to your issue a very important thing to note about using the <code>TransactionScope</code> class is that its default setting is to utilize a <a href="http://en.wikipedia.org/wiki/Isolation_%28database_systems%29#Serializable" rel="noreferrer">Transaction Isolation Level of Serializable</a>. Serializable is the most restrictive of the isolation levels and frankly its surprising that it was chosen as the default. If you do not need this level of locking I would highly recommend setting the isolation level to a less restrictive option (ReadCommitted) when instantiating a <code>TransactionScope</code>:</p> <pre><code>var scopeOptions = new TransactionOptions(); scopeOptions.IsolationLevel = System.Transactions.IsolationLevel.ReadCommitted; scopeOptions.Timeout = TimeSpan.MaxValue; using (var scope = new TransactionScope(TransactionScopeOption.Required, scopeOptions)) { // your code here } </code></pre>

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