Transaction Scope Settings

You may open Control Panel\Administrative Tools\Component Services.
Select Component Services\Computer\My Computer,
right-click and choose Properties.
On the MSDTC tab, press "Security Configuration..." and check if following options are enabled

Network DTC Access
Under Client and Administration >

Allow Remote Clients, Allow Remote Administration

Under Transaction Manager

CommunicationAllow
InboundAllow
OutboundNo

Authentication Required Enale XA Transactions
And then reboot your computer and test again.

Here is the Snippet for implementing Transaction Scope for Rolling out the Changes.

using (TransactionScope scope = new TransactionScope())
{
try
{ }

catch (Exception ex)

{
throw new Exception("Application cannot Save the entry as the mandatory fields are not filled");
} scope.Complete();

http://msdn.microsoft.com/en-us/library/ms172152.aspx (Microsoft Pulled out this Page, I guess. )

Using new TransactionScope() Considered Harmful