How to configure distributed transaction / XA support using Microsoft SQL Server 2005 JDBC Drive

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I am trying to configure distributed transaction and XA support using Microsoft SQL Server 2005 JDBC Driver. I have coppied SQLJDBC_XA.dll from XA directory and placed in my sql server binn directory and trying to run the script xa_install.sql from binn directory with command as below :

C:\Program Files\Microsoft SQL Server\80\Tools\Binn>
osql -U sa -n -P admin -S localhost -i C:\JavaLibraries\MS SQL Driver\sqljdbc_1.2\enu\xa\ xa_install.sql

But I am getting error saying :
[DBNETLIB]SQL Server does not exist or access denied.
[DBNETLIB]ConnectionOpen (Connect()).

when I replaced local host with the machine name it gives error :
[Shared Memory]SQL Server does not exist or access denied.
[Shared Memory]ConnectionOpen (Connect()).

where in I am able to test connection from Websphere using the same connection.

Please help some one ....... I am in URGENT need.... I need to enable XA suport for my application to run........

Thanks -
This looks like a connectivity issue. Do you have this problem only with osql? Can you connect using Query analyzer?|||

I was able to install the SQLJDCB_XA.dll with the exception that I copied it into a different directory:

C:\Program Files\Microsoft SQL Server\MSSQL.1\MSSQL\Binn

Have you tried that?

Regards.