A: 

Google came up with this knowledge base article for me. From your screenshot, it looks like you've got DTC configured right (though I'm skimming, definitely double check it). Have you checked your firewall settings?

Chris Shaffer
Yup. DTC traffic is allowed, but we actually have our Windows firewall off on that machine for now anyway. (it's not exposed)
Stuart Branham
A: 

It turns out the same DTC security configuration window on our Sql 2000 server did not have any network DTC access enabled. This apparently worked just fine with our old server, but when we upgraded to Server 2008 and Sql Server 2008, this needed to be enabled on BOTH servers. It is a mystery.

Stuart Branham
A: 

and how did you enable DTC on SQL 2000?

DTC is a setting in Windows Server, not SQL Server. If that's what you meant, any google search will point you to this article: http://bit.ly/cve3WAs a note, this is better suited as a comment on my answer, rather than an answer to the question asked.
Stuart Branham