Just read this interesting article by Omar on his blog Linq to SQL solve Transaction deadlock and Query timeout problem using uncommitted reads and at the end
Javed Hasan star
Regarding transactions in .Net and the (somehow surprising) side-effect of the DTC, this document Introducing System.Transactions in the .NET Framework 2.0 by Juval Lowy explains things very well and is still fully valid (.Net4). Worth reading.
(I would also have posting a comment... if I could.)