OLE DB provider "SQLNCLI11" for linked server was unable to begin a distributed transaction.

Hi,

I am running SQL Server 2012 Standard with SP1 and am executing a stored proc on the source server which in turn executes a stored proc on the destination server. This is all done via linked server. The Linked Server to the destination has RPC and RPC OUT as set to TRUE as logs into the destination as "sa"  Same as the destination -> source, RPC and RPC OUT set to TRUE and logs into source as "sa"

I have configured the DTC on the source and destination servers to allow all traffic....

This worked perfectely in SQL2005 but I have recently upgraded to SQL2012+SP1 and it no longer works. Anybody have an idea if this is a problem in SQL2012? Is there a way around it or am I doing something wrong?

I saw this article wher ethis was a problem in SQL2008 with was fixed by a CU.

http://social.msdn.microsoft.com/Forums/en-US/sqldatabaseengine/thread/523116d4-4c8e-43a8-abf4-e705ffaa68c8/

Thanks in advance for any ideas.