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A custom Transaction Manager was implemented in order to manage handling transaction start, commit and rollback in conjunction with the TransactionScope. To achieve this the OLEDBSERVICES=-3 option is specified (http://msdn.microsoft.com/en-us/library/windows/desktop/ms724518(v=vs.85).aspx) in the connection string which effectively disables managing of transactions so that the TransactionManager could manage the transactions. However, doing so limits the functionality of the TransactionScope construct with regard to distributed transactions. So, using distributed transactions should be re-enabled.
Unfortunately, this change will probably mean that the BEING/COMMIT/ROLLBACK TRANSACTIONs will not be logged via the StatementExecuted event.
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Created issue Add support for LocalTransactionScope so that should distributed transactions not be required the LocalTransactionScope construct can instead be utilised which will implement just database transactions. This will therefore also include transaction logging statements.