Linked server was unable to start a distributed transaction - SQL Server

Recently I migrated a server  to Windows Server 2008 and the database from SQL Server 2003 to SQL Server 2008.After the migration one of the web applications started throwing this error.

To fix this I had to enable the distributed transaction coordinator on the server that application was trying to access.

After I did this the error message changed to MSDTC is unavailable on the server .

To fix this I had to configure the MSDTC on the server that application was trying to access.The steps are listed in the following link.

From MSDN (http://msdn.microsoft.com/en-us/library/ms936442(v=cs.70).aspx)

Screenshots of the above steps is below.