You may receive error code -1073737712 when you try to start the Distributed Transaction Coordinator service in Windows XP or in Windows Server 2003

To resolve this problem, use the following methods as required, in the order in which they are presented.

Method 1: Re-create the MS DTC log

Re-create the MS DTC log, and then restart the service. To do this, follow these steps:

1. Click Start, click Run, type cmd, and then click OK.
2. At the command prompt, type the following command, and then press ENTER:
   msdtc -resetlog
   Warning The msdtc -resetlog command can cause data corruption if it is used incorrectly. Make sure that you do not have any pending transactions when you run this command.
3. Type the following command, and then press ENTER:
   net start msdtc

Method 2: Set the logon account permissions for the MS DTC service

If Method 1 does not resolve the problem, set the logon account for the MS DTC service to have read and write permissions for the Msdtc.log file. To do this, follow these steps:

1. Click Start, click Run, type cmd, and then click OK.
2. At the command prompt, type control admintools, and then press ENTER.
3. Double-click Services.
4. In the Services pane, locate Distributed Transaction Coordinator.
5. In the Log On As column, note the account name.
   
   Note The default logon account for the MS DTC service is the NETWORK SERVICE account.
6. Start Windows Explorer, and then open the %windir%\System32\Msdtc folder.
7. Right-click the Msdtc.log file, and then click Properties.
8. Click the Security tab.
9. Click the logon account name that you noted in step 5. For example, click the NETWORK SERVICE account name.
10. In the Permissions pane, click to select the Allow check box for the following permissions:
    • Read & Execute
    • Read
    • Write
11. Click OK.
12. Click Yes to accept the security warning.
13. In the Services pane, right-click Distributed Transaction Coordinator, and then click Start.

Method 3: Assign permissions to the NETWORK service to traverse the directory tree

Determine whether the NETWORK service has permissions to traverse through the folder. To do this, follow these steps.

Note By default, the "Everyone" group has these permissions. For more information, go to the following Microsoft TechNet website:

1. Click Start, click Run, type secpol.msc, and then click OK.
2. Browse through the following computer configuration: 
   \Windows Settings\Security Settings\Local Policies\User Rights Assignment 
3. Check for "Bypass traverse checking," and then add the "Everyone" group. 
4. Update the Group Policy settings on the computer. To do this, click Start, click Run, type gpupdate, and then click OK.
5. In the Services pane, right-click Distributed Transaction Coordinator, and then click Start.