I had a failure configuring BizTalk Server 2010. The Enterprise Single Sign-On installed but I got an error with the Group and the BizTalk RunTime. When I tried to run the installation again it showed and error beside the BizTalk Managment database which stated that it had been installed and I needed to choose another database name.
This told me that the account I was using to inst all BizTalk did have the correct permissions to create databases. The error was because MSDTC was not configured correctly. This needs to be done on BOTH the BizTalk Server and the SQL Server. The correct settings are shown below.
First though, delete the Biztalk Management database from the SQL Server because you don't want to end up with two. To configure MSDTC on Windows Server 2008 R2 go to Server Manager, select Roles -> Application Server -> Component Services. Select Distributed Transaction Coordinator and then Local DTC. Right click, select Properties then click on the Security tab. Make sure you are using the Network Service account as well as checking the boxes shown.
Remember you have to do this on both the SQL Server box and the Biztalk Server.
After I had configured MSDTC I re-ran the Biztalk Server Configuration tool and the configuration completed successfully. Happy Days!