Distributed transaction error in SQL Server 2005

I have seen problems like below popping up in the SQL Server 2005



Now the message sounds a bit confusing, the reason why I say so is you will be able to connect to the database and test the connection as well. But when you execute any query through your app you"ll get this message.... sounds interesting isn't it ??

The actual reason to this scenario is because SQL Server 2005 by default does not allow remote connections. To enable remote connections follow the steps below

1. Start > All Programs > Microsoft SQL Server 2005 > Configuration Tools> Surface Area Configuration
2. Select Surface area Configuration for Sercies and Connections
3. Click Root Sql Express > Database Engine > Remote Connection .
Select Local and Remote Connection
Select Using both TCP/IP only
Click OK/Apply