Hi,
Did you decide to reconfigure your BizTalk on remote SQL?
If so – did you configure MSDTC on both servers? (BizTalk + SQL)?
Your user under which run service – is it Active Direcory defined? Because it must – groups and users need to be defined in domain.
The user under which will run BizTalk service – need for configuration to have sufficient rights on master – while configuring BizTalk, it creates DataBases and jobs, and different objects like this.
In my case – sysadmins define the service account as administrator on SQL, and after if they want to set lower rights – they do so.
Your error seems like unsufficient rights on SQL.
Good Luck,
Yonathan.