A transactional file system wherein multiple file system operations may be performed as a transaction. An application specifies that file system-related operations should be handled in a transaction, and the application is given a file handle associated with a transaction context. For file system requests associated with a transaction context, a file system component manages operations consistent with transactional behavior. The component provides data isolation by providing multiple file versions, such that transactional readers do not receive changes until after the transaction commits and the reader reopens the file. The component also handles namespace logging operations in a multiple-level log that facilitates logging and recovery. Namespace isolation is provided until a transaction commits via isolation directories, whereby until committed, a transaction sees the effects of its own operations but not the operations of other transactions. Transactions over a network are also facilitated via a redirector protocol.