Take a look at http://groups.google.com/group/microsoft.public.sqlserver.server/msg/127255ab5a3a1fe0?hl=en&lr=&ie=UTF-8&oe=UTF-8

>I am facing the following problem. Please reply it as soon as possible.
>
>
> Error:-2147217900 The operation could not be performed because the OLE DB provider 'SQLOLEDB' was unable to begin a distributed transaction
>
>
>
> Situation: Server A & Server B are connected through Linked Server.
>
>
>the above error is faced on step 3
>
> Step1: Start a Transaction in VB Code in Server A.
> Step2: Fire a Update statement in the local database of Server A.
> step3: Execute a stored procedure of Server B.
> Step4: Commit the Transaction in VB Code in server A.
> After that, above error is coming.