SQLOLEDB and distributed transactions

<i><b>Originally posted by : Jignesh (codehunt@yahoo.com)</b></i><br />I have to connect two independent MS SQL database servers. For this I have configured a link sever from one server to another using Client network utility and enterprise manager->security->Linked Servers. I am able to run single queries on the remote database. The problem arise when I try to run a stored procedure which selects and updates both the servers. I am getting an error "Server: Msg 7391, Level 16, State 1, Procedure Sp_DownLoadMinorFromOnline, Line 8 <br />The operation could not be performed because the OLE DB provider `SQLOLEDB` does not support distributed transactions. [OLE/DB provider returned message: Distributed transaction error]." When I traced the error it printed the following message "OLE DB error trace [OLE/DB Provider `SQLOLEDB` ITransactionJoin::JoinTransaction returned 0x8004d00a]" <br /><br />The documentations show that SQLOLEDB does support distributed transactions. Both the servers are running on Windows NT 4.0 with service pack 6a. SQL server version is 7.0 with service pack 2. <br />In the queries I am using the format of LinkSerrver.Catalog.Schema.Table . <br />Please take this as very urgent. <br /><br />