When you attempt to start the MSDTC (MicroSoft Distributed Transaction Coordinator) service in Windows XP, or Windows Server 2003, you receive:

Windows could not start the Distributed Transaction Coordinator on Local Computer. For more information, review the System Event Log. If this is a non-Microsoft service, contact the service vendor, and refer to service-specific error code -1073737712.

The Application event log records:

Event Type: Error
Event Source: MSDTC
Event Category: LOG
Event ID: 4163
Description: MS DTC log file not found. After ensuring that all Resource Managers coordinated by MS DTC have no indoubt transactions, please run msdtc -resetlog to create the log file.

Event Type: Error
Event Source: MSDTC
Event Category: TM
Event ID: 4185
Description: MS DTC Transaction Manager start failed. LogInit returned error 0x5.

The System event log may record:

Event Type: Error
Event Source: Service Control Manager
Event Category: None
Event ID: 7024
Description: The Distributed Transaction Coordinator service terminated with service-specific error 3221229584 (0xC0001010).

This behavior will occur if the MSDTC service cannot access the %SystemRoot%\System32\Msdtc\msdtc.log file.

To resolve this issue:

01. Open a CMD.EXE window.

02. Type msdtc -resetlog and press Enter, making sure that you DO NOT have any pending pending transactions before you run the command.

03. Type net start msdtc and press Enter. If your problem is resolved, exit this procedure.

04. Type Services.msc and press Enter.

05. Double-click Distributed Transaction Coordinator.

06. Select the Log On tab.

07. Remember the account name, which defaults to \[NT Authority\]\NetworkService.

08. Type Explorer.exe /select,%SystemRoot%\System32\Msdtc\msdtc.log and press Enter.

09. Right-click the Msdtc.log file and press Properties.

10. Select the Security tab.

11. Select the account name (NetworkService) that you remembered from step 07.

12. In the Permissions for.... area, select the Allow check boxes for Read & Execute, Read, and Write.

13. Press Apply and OK.

14. If you receive a security warning, press Yes to accept it.

15. In the CMD.EXE window, type net start msdtc and press Enter.