This is known bug of Biztalk 2004. I’m not sure this would happen in Biztalk 2006 environment again but I just want to make a memento of the issue.
When the Biztalk server has a NNTP service, above error will defenitely come up, due to the nntpsvc.dll which is NNTP service component. Biztalk deployment wizard loads the dll and try to call function, NNTPSVC_LPC ( this calls LookupAccountName ) using security context of NNTPSVC. But deployment wizard doesn’t actually have a permission to do so, one of the parameters will be empty and this AllocateCCall will throw an exception “Out of memory.”
This error does look like has something to do with DTC, but it doesn’t. It’s simply a matter NNTP svc.
Workaround :
Since there is a workaround for this, Microsoft didn’t make a hotfix for this. To solve this, you need to remove NNTP service from your Biztalk server.
We’ve done so, but I assume it will be solved as soon as the dll is deleted.