Danny,

I had this situation recently, using Snapshot replication in SQl Server 2000.

After much head-scratching, the problem turned out to be NOT ENOUGH DISK SPACE on the server that was the publisher.

The Snapshot Agent would run and complete successfully.

But the Distribution Agent would fail with the same message you are getting. In my case, I was trying to distribute to another server - yet for some reason, SQL Server (apparently) did not have quite enough free-space on the disk drive to perform the distribution.

This error condition can be caused by problems other than not enough disk space - but it is worth checking out.

Good luck. John