One of clients had problem with MSDTC service on Windows 2003 server, which couldn’t start. After short investigation I have found corresponding errors in Application log:

Event Type:    Error
Event Source:    MSDTC
Event Category:    LOG
Event ID:    4163
Date:        2011-08-02
Time:        12:02:08 PM
User:        N/A
Computer:    servername
Description:
MS DTC log file not found. After ensuring that all Resource Managers coordinated by MS DTC have no indoubt transactions, please run msdtc -resetlog to create the log file.

For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.

and

Event Type: Error
Event Source: MSDTC
Event Category: TM
Event ID: 4185
Date: 2011-08-02
Time: 12:02:08 PM
User: N/A
Computer: servername
Description:
MS DTC Transaction Manager start failed. LogInit returned error 0x3.

For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.

and

Event Type: Error
Event Source: MSDTC
Event Category: SVC
Event ID: 4112
Date: 2011-08-02
Time: 12:02:08 PM
User: N/A
Computer: servername
Description:
Could not start the MS DTC Transaction Manager.

For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.

Also System eventlog contained:

Event Type: Error
Event Source: Service Control Manager
Event Category: None
Event ID: 7024
Date: 2011-08-02
Time: 12:19:26 PM
User: N/A
Computer: servername
Description:
The Distributed Transaction Coordinator service terminated with service-specific error 3221229584 (0xC0001010).

For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.

As it is recommended in first event and numerous forums I have tried to run:

msdtc -resetlog

but this command generated another error:

Event Type: Error
Event Source: MSDTC
Event Category: SVC
Event ID: 4135
Date: 2011-08-02
Time: 12:01:51 PM
User: N/A
Computer: servername
Description:
Failed to create/reset the MS DTC log file.

For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.

after some search I have found several solutions to this problem, such as activating network access for DTC, but nothing helped. From colleagues I have learn that this server previously was in cluster but then cluster was abolished. So problem was with log file settings of MSDTC and I have decided to find out where Whindows store information about this files. After short search on healthy system I have found registry key HKEY_CLASSES_ROOT\CID{GUID}\CustomProperties\LOG\Path where {GUID} some random GUID. Default value of this key pointed to MSDTC log file. After this I have looked through HKEY_CLASSES_ROOT\CID\ subkeys on problem server and found GUID stored similar settings. Log file settings here pointed to Q:\MsDtc, where Q: previously was quorum drive and not longer existed. After fixing this setting to point correct path, problem has gone.

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