Just wanted to add that I also encountered this issue today. Also on SQL2008R2 SP1.

Very weird, the error is reported on the publisher but is referring to a failure of the distribution agent running on the subscriber.

The microsoft support article says this only occurs when "You use the "Distribution Profile for OLEDB streaming" profile for the Distribution Agent", however I am not using this profile. I'm using a custom profile which does not include any of the OLEdb profile settings.

Also the error just started out of nowhere, no changes, replication has been working fine for over a year. I added the permission to the folder to fix it, but would like to know why it started only now.