The partner transaction manager has disabled its support for remote/network transactions

As a lesson learned, when doing two way replication on SQL Servers, make sure to enable Network Access to MS DTC. To enable it do the following steps:

1. Go to Run > dcomcnfg.exe
2. Expand Console tree and find DTC
3. Click on local dtc > properties
4. Go to Security Tab
5. Enable Network DTC Access 
6. Check inbound & outbound (whichever is required)
7. Check Client Administration 
8. Use compatible authentication, mutual has the highest security.

Reference:
http://technet.microsoft.com/en-us/library/cc753620(v=ws.10).aspx