DTC not working when two transactions are being executed - sql-server

Question

I'm working on SQL Server 2008 and I'm trying to execute a stored procedure which updates a table and executes another stored procedure on a linked server.
The point is it works when no update is made, just like this:
[test_DTC] on [Server1]
CREATE PROCEDURE [dbo].[test_DTC]
#UserId int,
#Status tinyint
AS
BEGIN
EXEC [Server2].[Database].[dbo].[test_DTC];
END
GO
[test_DTC] on [Server2]
CREATE PROCEDURE [dbo].[test_DTC]
AS
BEGIN
PRINT 'Done'
END
GO
Execute on Server1:
EXEC [test_DTC]
Result:
Done
But when I include the UPDATE on Server1 procedure, it fails.
[test_DTC] on [Server1]
CREATE PROCEDURE [dbo].[test_DTC]
#UserId int,
#Status tinyint
AS
BEGIN
UPDATE
Users
SET
Status=#Status
WHERE
UserId=#UserId;
EXEC [Server2].[Database].[dbo].[test_DTC];
END
GO
[test_DTC] on [Server2]
CREATE PROCEDURE [dbo].[test_DTC]
AS
BEGIN
PRINT 'Done'
END
GO
Execute on Server1:
EXEC [test_DTC]
Result
Provider OLE DB "SQLNCLI10" from linked server "[Server2]" returned message "The transaction has already been implicitly or explicitly committed". Msg 7391, Level16, State 2, Procedure [Server2].[Database].[dbo].[test_DTC], Line 19
The operation could not be performed because OLE DB provider "SQLNCLI10" for linked server "Server2" was unable to begin a distributed transaction.
Thanks for your help

Answer 1

I have found a solution for this is the MSDN Blog
it says
The reason is that when transactions propagate from one machine to another they include their machine name/DNS name along with it. When it arrives on the other machine, it will use this name to attempt to communicate back to the originator machine. If this communication fails then distributed transactions will not work in the system.
Microsoft has provided a Detailed Article on the same