Inner Transactionscope error: "Communication with the underlying transaction manager has failed" - tsql

Question

I am not sure I am doing any of this correctly. Is it because I am opening two connections? I am closing them regardless of errors. I did try putting in some inner transaction scopes and setting the second one to RequiresNew. The two methods are independent of each other, however, if one fails I need them both to rollback. I may have to modify how I am creating and closing the connections, I feel. Any thoughts? Here is some example code of what I am doing:
Public Sub TransMethod()
Using sTran As New Transactions.TransactionScope
factory1.UpdateMethod(someObject1)
facotry2.insert(someobject2)
sTran.Complete()
End Using
End Sub
Public Class factory1
Public Shared Sub UpdateMethod(obj)
dim someSQLParams....
DataAcces.ExecuteNonQuery(command,someSQLParams)
End Sub
End Class
Public Class factory2
Public Shared Sub Insert(obj)
dim someSQLParams....
DataAcces.ExecuteNonQuery(command,someSQLParams)
End Sub
End Class
Public Function ExecuteNonQuery(ByVal spname As String, _
ByVal ParamArray parameterValues() As Object) As Object
Dim connection As SqlConnection = Nothing
Dim command As SqlCommand = Nothing
Dim res As Object = Nothing
Try
connection = New SqlConnection(_connectionString)
command = New SqlCommand(spname, connection)
command.CommandType = CommandType.StoredProcedure
command.Parameters.AddRange(parameterValues)
connection.Open()
command.ExecuteNonQuery()
res = command.Parameters(command.Parameters.Count - 1).Value
Catch ex As Exception
CreateDataEntry(ex, WriteType.ToFile, spname)
If Not (transaction Is Nothing) Then
transaction.Rollback()
End If
Finally
If Not (connection Is Nothing) AndAlso _
(connection.State = ConnectionState.Open) Then _
connection.Close()
If Not (command Is Nothing) Then command.Dispose()
End Try
Return res
End Function

Answer 1

Whenever you open more than 1 connection using TransactionScope, it changes from a normal transaction against sql server to a distributed transaction, which requires setting up the MSDTC.
That will happen even if the connections have the same connection string, which is one of the "by design" issues. I haven't followed up if it remains the same on .net 3.5+