Why can't I update data into database using LINQ to SQL?

I am trying to update data while I am reading them from database, see below. But after the whole thing finish, the data didn't get updated.

Is there any transaction syntax i need to specify? (When I debug, I can see I have the right record retrieved.)

using (conn = new SqlConnection(MyConnectionString))
                using (SqlCommand cmd = new SqlCommand("dbo.MyProcedure", conn))
                {
                    cmd.CommandType = CommandType.StoredProcedure;
                    cmd.Parameters.AddWithValue("@Count", count);
                    conn.Open();
                    using (SqlDataReader reader = cmd.ExecuteReader(CommandBehavior.CloseConnection))
                    {
                        while (reader.Read())
                        {
                            // wrapper object, not related to database
                            SampleModel c = new SampleModel();  
                            c.ID= (string)reader["ID"];
                            c.Name = (string)reader["Name"];
                            c.Type = (int)reader["Type"];

                            // modeList will return to outside, not related to database
                            modelList.Add(c);

                            sampleTable1  table1 = context.sampleTable1s.SingleOrDefault(t=> t.id = c.ID);   

                            // try to update the "isRead", but it doesn`t work....!!!
                            // about the datatype, in the data base, it is "smallInt"
                            // in linq to sql, it is "short?"
                            // PS Default value all should be 0
                            table1.isRead = 1;
                            context.SubmitChanges();  <--- here, it doesn`t do the job // context is new from Linq to SQL
                        }
                    }
                    conn.Close();
                }

Here is my procedure:

SET ANSI_NULLS ON
GO
SET QUOTED_IDENTIFIER ON
GO
CREATE PROCEDURE MyProcedure    
    @Count int = 100
AS
BEGIN

  SELECT TOP (@Count )
         t1.id AS ID, 
         t1.name AS Name, 
         t2.type AS TYPE    
    FROM sampleTable1 as t1 with (nolock), 
         sampleTable2 as t2 with (nolock)          
   WHERE (t1.t2Id = t2.Id)     
ORDER BY t1.name asc

END
GO

And if I put all my code inside TransactionScope block

using (TransactionScope scope = new TransactionScope())
{
    // all the C# code above
    scope.Complete();
}

I will get an exception "MSDTC on server 'localhost-sqlserver2005' is unavailable."

And if I only put some of the code, there is no exception, but the data did`t get updated

using (TransactionScope scope = new TransactionScope())
{
    sampleTable1  table1 = context.sampleTable1s.SingleOrDefault(t=> t.id = c.ID);   

    table1.isRead = 1;
    context.SubmitChanges(); 

    scope.Complete();
}

Thanks.