I am using MSDASQL provider to create a linkedServer and is using Distrubuted Transaction in the application...but it is throwing out the following error...

Server: Msg 7391, Level 16, State 1, Line 1
The operation could not be performed because the OLE DB provider 'MSDASQL' was unable to begin a distributed transaction.
[OLE/DB provider returned message: [Microsoft][ODBC SQL Server Driver]Distributed transaction error]
OLE DB error trace [OLE/DB Provider 'MSDASQL' ITransactionJoin::JoinTransaction returned 0x8004d00a].

What keeps me guessing is that the same code worked in the development environment and had no problems in starting the Distributed Transaction...

Note: DTC is running on both the server and I am not using a loop back server!!!!

Please Help