I found this on Microsoft Forum:
http://www.microsoft.com/technet/community/newsgroups/dgbrowser/en-us/default.mspx?query=Object%20synchronization%20method%20was%20called%20from%20an%20unsynchronized%20block%20of%20code&dg=&cat=en-us-technet-bizserver&lang=en&cr=US&pt=79424adc-939e-46da-a5c9-632226211c90&catlist=A8EA14B8-66CC-48DF-BE4E-C9A88CEAE316&dglist=&ptlist=
I had to add this to bottom of BTSNTSvc.exe.config
<startup>
<supportedRuntime version=\”v1.1.4322\” />
</startup>
Apparently had some confusion of using some features of .NET 2.0 framework. Apparently is also related to the Listen Shape.
I also had lots of messages in the application event log which helped lead me to this.
