You need MDAC to be active. Check your services and confirm that the MDAC is present and is started. If it is set to manual start up, start it and try your action again. If it is not listed under your services, you are going to want to go to the MS website and download it. You can not get very far without MDAC installed and started.
OTM needs its own version of MDAC. By that I mean, OTM 2.0 is compatible with MDAC 2.5. If you have a newer version of MDAC (depending on OS and SPs loaded) OTM will fail to install correctly. You'll need to roll back the MDAC to version 2.5. That can be messy. I have installed well over 200 OTM systems across North America and I have only needed to resort to that a handful of times. A couple of times starting from scratch (i.e. re-installing the OS and OTM so that the correct MDAC verison is running) was the only way to get it to work. Good luck.
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