Have you ever wondered if/when a transaction in WCF upgrades to the DTC? There two simple ways to check this:
In both cases, you'll see the active transactions jump from 0 to 1 when a transaction upgrades to DTC. This happens when you cross a service boundary. If you just use a transaction within the service, WCF will stick to the Lightweight Transaction Manager as long as you stay within you AppDomain or access a single database (SQL Server 2005 and up).
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Disclaimer The opinions expressed herein are my own personal opinions and do not represent my employer's view in any way.