DTC ... Distributed Transaction update.... Help

Hello.

I am trying to update a table on another server which is configured as a linked server on the server issueing the update. I can select data from the linked server no problem. But when I issue the update statement within the begin distributed tranaction I get the following.

I am getting the following message

Server: Msg 7392, Level 16, State 2, Line 1
Could not start a transaction for OLE DB provider 'SQLOLEDB'.
[OLE/DB provider returned message: Cannot start more transactions on this session.]

Has anyone had any similar problems with DTC.... I am getting ready to call Microsoft. But wanted to avoid the charge.

Thanks John