How do you correctly link two SQL Servers with Domain

I need to know how to correctly link two SQL servers in this environment.

PC #1
SQL Server 2005 x64
Windows 2003 Server Ent ed (domain controller)
Mixed Mode Authentication

PC #2
SQL Server 2000 SP4
Windows 2003 Std Ed (member server)
Mixed Mode Authentication

What I need is to link the two servers together so users can query across the PC's.  I currently can query some from PC #1 to PC #2, but with limited results.   This is based on SQL authentication not Domain.   How do you set up the domain authentication to work correctly?
pamsautoAsked:
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TAB8Commented:
Set up PC2 as a linked server on PC1 ...
http://msdn2.microsoft.com/en-us/library/aa213778(SQL.80).aspx 
also check ..
http://support.microsoft.com/default.aspx?scid=kb;en-us;329332&Product=sql to setup the correct dtc security on PC1
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pamsautoAuthor Commented:
Well we have all that done and I can do a query from the PC#1 to PC#2, but not from PC#2 to PC#1.  I am getting this error, which I can find very little about on the web.

Server: Msg 7399, Level 16, State 1, Line 1
OLE DB provider 'SQLOLEDB' reported an error.  
[OLE/DB provider returned message: Unspecified error]
OLE DB error trace [OLE/DB Provider 'SQLOLEDB' IDBInitialize::Initialize returned 0x80004005:   ].

Any ideas on what to check?
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TAB8Commented:
You will have to set up a linkes server on PC#2 to PC#1 as well if you want to query both ways
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Microsoft SQL Server 2005

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