Activerecord and mssql server

I’m trying to use activerecord outside of rails with a
legacy mssql database. Reading from the db works, but
when I try to save a new object (i.e. insert) I get
the following error.

DatabaseError: Execute
OLE error code:80004005 in Microsoft OLE DB
Provider for SQL Server
Cannot create new connection because in manual
or distributed transaction
HRESULT error code:0x80020009
Exception occurred.: SELECT @@IDENTITY AS Ident:

Anyone have any ideas on this? mssql server is not my forte.

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