Help Needed on DTC

Hi,
I'm having problems while running distributed transactions on two different servers. I
have two servers 'EPOOL5' and 'EPOOL9' respectively running SQl servers.
I have linked both the servers using sp_addlinkedserver 'EPOOL5' and sp_addlinkedserver 'EPOOL9' on EPOOL9 and EPOOL5 respectively. I have created a user PCRCCTEST on both the server databases. The databases being VDPMASTER on EPOOL5 and VDPMASTERTEST on EPOOL9. I have given the user PCRCCTEST proper privileges to access the tables in the respective databases.
I have started DTC on both the servers EPOOL9 and EPOOL5.

Now when I execute a query say select * from epool9.vdpmastertest.dbo.project_master from EPOOL5, the query is successfully executed and the rows are retrieved. When I insert rows similary, the rows are getting inserted. I am facing a problem when I try to run transactions. i.e I have created a stored procedure 'test' on VDPMASTER database on EPOOL5. 'Project_Master' being the table in EPOOL9 VDPMASTERTEST database. The user PCRCCTEST has privileges to insert data into Project_Master.

create procedure test
as
begin distributed transaction

insert into epool9.VDPMASTERTEST.dbo.Project_Master
(project_id,quality_id,project_name,project_client ,start_date,end_date,
project_active,project_master_update_flag,project_ master_updated_by, project_master_updated_on)
values (447,'3433','manufacturing','firstbank','02/22/2002','02/23/2003','Y','I',1,getdate())

if @.@.error=0
begin
commit transaction
print 'commitTest'
end
else
begin
print 'rollbackTest'
rollback transaction
end

When I execute this stored procedure from EPOOL5 server, I get the following error.

Server: Msg 7392, Level 16, State 2, Procedure test, Line 5
Could not start a transaction for OLE DB provider 'SQLOLEDB'.
[OLE/DB provider returned message: Only one transaction can be active on this session.]

I would be grateful if you could help me on this.
Thanks in advance
P.C. VaidyanathanI believe that this error is caused by nested transactions

begin tran
begin tran

commit tran
commit tran

To prevent your stored procedure from creating nested transactions you can check @.@.TRANCOUNT to see if a BEGIN TRAN has already been issued.

CREATE PROCEDURE test
as
DECLARE @.tfTran tinyint

--
-- Start Transaction
--
IF (@.@.TRANCOUNT = 0) BEGIN
SET @.tfTran = 1
BEGIN DISTRIBUTED TRANSACTION
END
ELSE
SET @.tfTran = 0

INSERT INTO epool9.VDPMASTERTEST.dbo.Project_Master
(project_id,quality_id,project_name,
project_client,start_date,end_date,
project_active,project_master_update_flag,
project_master_updated_by, project_master_updated_on)
values
(447,'3433','manufacturing','firstbank',
'02/22/2002','02/23/2003','Y','I',1,getdate())

IF @.@.error=0 BEGIN
IF (@.tfTran = 1) BEGIN
COMMIT TRAN
PRINT 'Commit Test'
END
END
ELSE BEGIN
IF (@.tfTran = 1) BEGIN
ROLLBACK TRAN
PRINT 'Rollback Test'
END
END