Make sure that the “Distributed Transaction Coordinator” Service is running on both database and client. Also make sure you check “Network DTC Access”, “Allow Remote Client”, “Allow Inbound/Outbound” and “Enable TIP”.
To enable Network DTC Access for MS DTC transactions
Open the Component Services snap-in.
To open Component Services, click Start. In the search box, type dcomcnfg, and then press ENTER.
Expand the console tree to locate the DTC (for example, Local DTC) for which you want to enable Network MS DTC Access.
On the Action menu, click Properties.
Click the Security tab and make the following changes: In Security Settings, select the Network DTC Access check box.
In Transaction Manager Communication, select the Allow Inbound and Allow Outbound check boxes.