I have hosted my Webapp on server 1 and my database on server 2
But i m getting following error
\"Communication with the underlying transaction manager h
We had the exact same situation, and more than once. Each time, it was one of the following:
The IP address in the DNS for the server is outdated (as said in error message: "two machines cannot find each other by their NetBIOS names"). You can check if this is the case by trying ping servername
from one server to another in the command prompt. If the ping by name fails and ping by IP succeeds (or ping by name returns the wrong IP), than you should talk to the System Admins to take a look at DNS/DHCP.
The servers are created as an image of preconfigured server (for example, if you are working with virtual machines, and instead of doing a fresh install for each of the servers, you simply clone the image). This is a problem because DTC has an internal "Identifier" - and in case of image cloning both your installations now have same DTC ID, and won't be able to communicate with each other. The solution is to simply uninstall and install the DTC again.
Hope it helps.