Out-of-process use of OLE DB provider "SQLNCLI10" with SQL Server is not supported

Came accross this little issue in SQL 2008 when cross server queries started failing. All had been working fine until I started configuring Database email profiles; then the error appeared against all jobs involving linked server queries.
I have seen the error reported elsewhere. The solution for me was straightforward enough and involved setting the properties in SQL server management Studio server objects>linked servers>SQLNCLI10 to Allow inprocess (checked).




My jobs are running happily again. It may be coincidence that the error started when I was configuring database email however, I suspect there is a link. If you have any security advice regarding this, I would welcome your opinions.