Thanks for clarifying Michael... actually didn't realize this was the case.
Seems like a high price to pay for this functionality especially since most applications are likely to use multiple open/close connections in their standard configuration which would all elevate to DTS. if I have to manage everything on a single connection anyway then I might as well manage the transactions on my own <s>...
+++ Rick ---
>>If all operations are performed on a single connection though then the transactions uses plain ADO.NET transactions.
>
>Should point out that the transaction will be a local non-distributed transaction only if connecting to SQL Server 2005. If you connect to any other database server including SQL Server 2000 it will promote to a full DTC transaction. This is because the other database resource managers do not support the automatic promotion of local transactions to distributed.