It looks like it is dying on the snapshot. Can you right click on the publication and select "View Snapshot Agent Status". If that looks ok, then it is having a problem with applying the snapshot on the subscriber. Based on the error it also looks like you are out of space for that database. Have you checked that?
David
@SQLTentmaker“He is no fool who gives what he cannot keep to gain that which he cannot lose” - Jim Elliot