Problem: The failure is due to Windows XP SP2 changing the logon setting for the "Distributed Transaction Coordinator" service from "NTAuthority\NetworkService" to "Local System Account".

Fix: This problem can be bypassed by reverting back to starting the DTC service under the "NT Authority/Network Service" account.

1. On the server that hosts DataServices.exe and PredictionServices.exe, right-click "My Computer" and select "Manage" to open the Computer Management console.

2. Select the "Services" node.

3. Find the "Distributed Transaction Coordinator" (DTC) service.

4. Right-click the DTC node and select "Properties".

5. Select the "Log on" tab.

6. Instead of "Log on as: Local System Account" select "This account:" and type "NT Authority\NetworkService" (case sensitive).

7. Clear the Password and Confirm Password boxes.

8. Click the OK button.

9. Right-click on the DTC service and select Restart.

10. Restart the machine or start the MSMQ service manually.