If you are trying to send or receive message to MQ Server using the MQSeries Adapter, and receiving following errors in the application event log:
on BizTalk Server
Event ID: 5740
The adapter "MQSeries" raised an error message. Details "Error encountered on opening Queue Manager name = <queue manager> Reason code = 2354."
on MQ Server
Event Source: Microsoft BizTalk Server 2006 Adapter for MQSeries
Event Category: Devices
Event ID: 264
Error encountered as BizTalk attempts to retrive a message from MQSeries, description = Error encountered on opening Queue Manager name = <queue manager> Reason code = 2354. hresult = 0XC0C11007. This error will also be reported on the BizTalk server.
Most probably, this issue arises due to lack of DTC connectivity between the BizTalk and MQ Server.
To resolve it, we have to make sure the DTC communication between two computers is fine. Make sure that the MSDTC security settings on both BizTalk as well as MQ Server looks like in the below screen shot.
Also, DTC communication can usually fail if the name resolution or RPC communication between two computers is failing. To test it, we can use a small but useful tool named as DTCPing.
Troubleshooting MSDTC issues with the DTCPing tool: http://blogs.msdn.com/distributedservices/archive/2008/11/12/troubleshooting-msdtc-issues-with-the-dtcping-tool.aspx
I hope it helps!