How to configure MSDTC on Windows Server 2008 R2

Are both machines that are going to be involved in the distributed transactions win2003 machines? If so, you can use the mutual authentication option instead of the No Authentication option. If one or both of the machines are win2000, then mutual authentication is not possible.

Also, "Allow Remote Administration" probably does not need to be checked off.

See this link: http://technet.microsoft.com/en-us/library/cc753510(WS.10).aspx

These two things may help put your sys admin at ease a bit.

RPC uses random high ports, which are in all likelihood being blocked by any firewall that happens to be between the devices.

It's possible to lock it down to a set range of ports so that this range can be allowed through the firewall; this KB article covers the process.

In my last unpleasant DTC-through-a-firewall experience, aside from needing to hardcode the port range, I recall needing to make some other arcane reg hacks, as well as relax a number of the security settings in the Component Services Management tool against my better judgement. Hopefully you have better luck; start with the ports and see how it goes!

(P.S., why the heck do applications still use and microsoft still support DTC?)