Thanks for your feedback. I would normally run the service under a domain account but in this particular case I was pulled in to troubleshoot the issue on a...

Seth,

I doubt that is the case. When this occurs the SQLCMD with :Connect will fail every time while SQLCMD with a -S switch will work every time. If...

Jeff,

DTC is running on both the database server and the machine where SQLCMD is being executed so it doesn't look like that is the problem.

Thanks

Ian