SQL Server Select Error - Server failed to resume the transaction

We have encountered a strange error this morning. After about 20 minutes of a process runnning in production against SQL Server 2005 we got this error with all the current connections in the pool:

(S0001/3971) Server failed to resume the transaction, desc: 3a000000a2."
Server failed to resume the transaction, desc: 3a000000a2.

The JDBC connection is setup as no_transaction so I am not sure what is happening.

  1. Has anyone see this error before?
  2. Does anyone know if no_transaction actually does create a begin and end transaction block on the IS side implicitly?
  3. Any insight into the issue would help.