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The Distributed Transaction Coordinator (MSDTC) service is a component of Microsoft Windows that is responsible for coordinating transactions that span multiple resource managers in a clustered environment.  Errors may occur when duplicate CIDs exist in the same environment, or where virtual machines have been used to add capacity to an environment. Virtual machines that are mirrored often encounter this issue. This error may also be encountered in standalone environments without NETCARDs.

If this issue occurs, you may see errors such as "Dependancy could not be created: System.Transactions.TransactionManagerCommunicationException: Communication with the underlying transaction manager had failed".  
The steps discussed in this article for the MSDTC configuration should be applied to the individual machines. In the case where the K2 Server and the SQL Server are separate machines, they must each be configured as described in this article.

Resolution

Follow these steps to resolve the error. External tools provided by Microsoft to assist in the diagnosis process may be required; links to these tools can be found at the end of the article.
The steps below describe one scenario under which this error may occur. They are simplified and not all steps are described in detail.

Step 1: Uninstall Network DTC (these steps apply to Windows Server 2003)

  1. From the Control Panel, click Add or Remove Programs
  2. Click Add/Remove Windows Components
  3. Click Application Server
  4. Click the Details… button
  5. Uncheck Enable network DTC access
  6. Click OK, and then click Next

Step 2: Uninstall MSDTC using the command line:

  1. Click Run on the Start menu
  2. Type CMD and press Enter
  3. On the command line type MSDTC –uninstall and press Enter
Step 3: Remove Registry Keys
  1. Use the Windows Registry Editor (regedit.exe), delete the following keys and subkeys:
    • HKLM/Software/Microsoft/ MSDTC
    • HKLM/System/CurrentControlSet/Services/MSDTC
    • HKEY_CLASSES_ROOT\CID (if found)
  2. Reboot the computer

Step 4: Reinstall DTC

  1. Click Run on the Start menu
  2. Type CMD and press Enter
  3. On the command line, type MSDTC –install and press Enter
  4. Using Add or Remove Programs, add the Enable network DTC access feature again. Refer to the Step 1 above for details.
  5. Click Run on the Start menu
  6. Type CMD and press Enter
  7. On the command line, type net start msdtc and press Enter

Additional Resources

To further assist in the diagnostic process, the following Microsoft tools are available: