New transaction cannot enlist in the specified transaction coordinator

I had a BizTalk application installed on Windows 2003 Standard Edition
with SP1, it accesses a SQL Servet 2000 database installed on Windows
2000 Server, the two computers are in the same domain. After applying SP1 we started
getting the error "New transaction cannot enlist in the specified transaction coordinator"

SP1 changed the settings for MSDTC under Component Services. The installation of SP1
- implicit value is "Mutual authentication required". We changed from "Mutual authentication
required" to "No Authentication Required" then everything works fine.

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