Can I use ADO-connected recordsets with MTS? From the information I can find it seems that MTS does not handle them.
You can, but the question is, do you really want to?
Using a connected (rather than disconnected) recordset means that you must maintain a stateful connection to the MTS object, which must then maintain one or more connections to the database. While this eases some programming tasks on the UI, it creates huge scalability problems, even for a relatively small number of users. It is much better to use stateless components in MTS, which grab the information from the database, passes it on to the client, disconnects from the database, and tells MTS it can destroy the component.
Any persistence you need can be created on the client, either within local memory structures (including those hidden in Windows controls, such as listboxes and comboboxes) or with local files.