We are trying to update a table on Server A from Server B. But we get the following error "Unable to start a nested transaction for OLE DB provider "SQLNCLI" for linked Server "A". A nested transaction was required because the XACT_ABORT option was set to OFF" We have tried to use XACT_ABORT ON and distributed transaction statements before the update. On using this, the update statements does say '1 row updated' but when we select that row again, the update statement has not committed. MSDTC is enabled. Both servers are sql server 2005. Can someone suggest any solution?