First I should say that I am not a replication expert, but based on the error message it appears there is a difference in the security setup on the 2 subscribers. What account(s) are the SQL Server and SQL Server agent accounts running under? Are they domain accounts? Do they all have rights to access each other?
Those are some of the questions that pop into mind and those answers have fixed similar problems, not necessarily replication, for me in the past.
Jack Corbett
Consultant - Straight Path Solutions
Check out these links on how to get faster and more accurate answers:
Forum Etiquette: How to post data/code on a forum to get the best help
Need an Answer? Actually, No ... You Need a Question