ASP.NET database connection error - the underlying provider failed on Open
context.Connection.Open() didn't help solving my problem so I tried enabling "Allow Remote Clients" in DTC config, no more error.
In windows 7 you can open the DTC config by running dcomcnfg, Component Services -> Computers -> My Computer -> Distributed Transaction Coordinator -> Right click to Local DTC -> Security. – kerem Mar 3 '11 at 16:48